How ASX investors can use the SFY ETF
The SPDR SFY ETF is the only Australian ETF providing exposure to Australia’s top 50 listed companies, by market capitalisation. SFY provides a low-cost way to invest in the ASX’s top 50 companies through a single fund.
The SPDR SFY ETF could be used by investors to get exposure to a broad basket of Australia’s largest public companies. The top 50 Australian stocks actually represent 80% of the Australian equity market and generally have a high level of liquidity. These Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
SFY meets our minimum market cap (FUM) criteria
The SPDR SFY ETF had $735.77 million of money invested when we last pulled the monthly numbers. Given SFY’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
SFY ETF fees explained
SPDR charges investors a yearly management fee of 0.29% for the SFY ETF. This means that if you invested $2,000 in SFY for a full year, you could expect to pay management fees of around $5.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Putting it all together
If you’re weighing up investing in SFY, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free SPDR SFY report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
