FUM

If a fund has a small amount of funds under management or FUM (meaning, the amount of money invested in the ETF), it risks being closed by the fund manager.

Here at Best ETFs Australia, we consider any ETF with less than $100 million invested to be a higher than normal risk of being closed. However, there are many variables to consider:

  • Is it a lower-cost ETF (under 0.5% in yearly management fees)? If so, it'll need more FUM to be profitable.
  • Is the ETF issuer a major provider of ETFs? If they are not 'one of the big guys', the ETF department could be closed if it fails to become profitable.

It's important to remember that if an ETF closes, the ETF investor will typically receive a notification from the ETF issuer and can elect to sell the ETF prior to its closing, or opt to receive his or her money back from the ETF after it closes.

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The 

BEST ETF 

in Australia?

We’ve found the ONE ETF that could rule them all… 

Right now, there are 200+ ETFs on the ASX. Then there are index funds. Hundreds of managed funds. LICs. REITs. And everything in between. Wouldn’t it be nice to make ONE investment and build the strong Core of your portfolio — with just one click? 

Rask’s lead ETF research analyst and investing team have identified our #1 ETF for 2021 and beyond. Our analyst team has put together a full research report and a step-by-step investment guide to buying this ETF. 

Best of all: The report is totally free and will be sent via email

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian-owned.

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