Find out what the ETF does
The ETFS ACDC ETF provides investors with passive exposure to the performance of companies involved in battery technology and lithium mining. ACDC adopts an equal weight strategy, meaning that it weights the shares within the portfolio equally – this is different from traditional index fund ETFs which invest more in the largest companies (as determined by market capitalisation).
The ACDC ETF could be used by investors to gain a tactical exposure to the battery technology thematic. ACDC is a global ETF, investing across Asia, the US, Europe and to a minor extent, Australia.
ACDC’s FUM meets our hurdle
The Global X ACDC ETF had $499.14 million of money invested when we last pulled the monthly numbers. Given ACDC’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.
Pay attention to yearly costs & fees
Global X charges investors a yearly management fee of 0.69% for the ACDC ETF. This means that if you invested $2,000 in ACDC for a full year, you could expect to pay management fees of around $13.80.
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.
Our takeaway
If you’re thinking about investing in ACDC, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Global X ACDC report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.