Are the SSO and WDMF ETFs worth watching in Dec?

It’s time to run a ruler over SPDR S&P/ASX Small Ordinaries Fund ETF (ASX: SSO) and iShares Edge MSCI World Multifactor ETF (ASX: WDMF). The ETFs invest in the Australian shares and International shares sectors/industries, respectively.

The SPDR S&P/ASX Small Ordinaries Fund ETF (ASX:SSO)

The SPDR SSO ETF provides exposure to a diversified portfolio of Australian companies and tracks the S&P/ASX Small Ordinaries Index. SSO is designed to capture the performance of the top 200 Australian small companies based on market cap, ranking from 101 to 300.

According to our most recent data, the SSO ETF had $25.04 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.

To learn more about the SSO ETF, read our free ETF investment report once you’re done with this article.

iShares Edge MSCI World Multifactor ETF (ASX:WDMF)

The iShares WDMF ETF invests in a diversified portfolio of global equities using a specific rules-based multifactor strategy. According to iShares, the four key factors used to select companies for this ETF are quality (financially healthy firms), value (inexpensive stocks), size (smaller companies) and momentum (trending stocks).

With our numbers for July 2022, WDMF’s FUM stood at $142.07 million. Since the WDMF’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Multifactor sector should be able to scale well and become profitable for the ETF issuer.

A look at the WDMF ETF fee load?

iShares, the ETF issuer, charges a yearly management fee of 0.35% for the WDMF ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $7.00.

This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.

Did you know that you get access to our free investment report on Best ETFs Australia? View the free WDMF ETF report by clicking here.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

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Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

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