What is the MICH ETF used for?
The Magellan MICH Fund is an actively-managed portfolio that invests in a select array of international infrastructure companies. The fund typically selects between 20-40 global equities from the infrastructure sector and hedges its exposure against the Australian dollar to manage currency risks.
MICH could be used by investors looking for a concentrated portfolio of leading global infrastructure stocks, as selected and managed by the investment team at Magellan. According to Magellan, it looks for companies that face reliable demand and have predictable cash flows.
Keep an eye on FUM
The Magellan MICH ETF had $878.86 million of money invested when we last pulled the monthly numbers. Given MICH’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
Magellan charges investors a yearly management fee of 1.06% for the MICH ETF. This means that if you invested $2,000 in MICH for a full year, you could expect to pay management fees of around $21.20.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the MICH ETF. Before doing anything, take a look at our Magellan MICH report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
