What does the ETPMAG ETF do for a diversified portfolio?
The ETFS ETPMAG ETF provides investors with access to the precious metal of silver, by seeking to achieve a return equivalent to the movements in the silver spot price, before fees and expenses.
ETPMAG could be used by investors to diversify a portfolio with the precious metal commodity of silver which is typically uncorrelated with other asset classes. In this way, ETPMAG could be used as a hedge against risk – silver, like gold, has been traditionally used as a store of value and a hedge against inflation.
How big is the Global X ETPMAG ETF?
The Global X ETPMAG ETF had $211.55 million of money invested when we last pulled the monthly numbers. Given ETPMAG’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 Commodities sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
ETPMAG ETF fees reviewed
Global X charges investors a yearly management fee of 0.49% for the ETPMAG ETF. This means that if you invested $2,000 in ETPMAG for a full year, you could expect to pay management fees of around $9.80.
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.
Next steps
Even if you like what you see, before diving straight into buying the ETPMAG ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Global X ETPMAG report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.