What you need to know about the HACK ETF
The BetaShares HACK ETF provides investors with exposure to the performance of the world’s largest companies involved in cybersecurity – a sector with strong growth prospects as businesses begin to place an increasing emphasis on cybersecurity and the protection of data.
As at the end of last month, the HACK ETF had $204.68 million of money invested. Given HACK’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 derisks the ETF.
Fees & costs
The yearly management fee on the HACK ETF is 0.67%. The issuer, BetaShares, takes this out automatically.
What this fee means is, if you invested, say, $2,000 in the HACK ETF for a full year you could expect to pay management fees of around $13.40. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.) to buy or sell the ETF. Importantly, you should also be mindful of the ‘spread‘ for the ETF.
Is the ETF too expensive?
The easiest way to know if the ETF is too costly is to compare it with other ETFs in the same sector, and against the industry average. The average management fee (MER) across all of the ETFs covered by Best ETFs Australia is 0.5%, which is around $10.00 per $2,000 invested. Small changes in fees can make a big difference after 10 or 20 years. To understand all of the fees, you should read the HACK Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it has the complete and up-to-date information.
If you want to learn more about the HACK ETF, take a look at our ETF free investment report.
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The POU ETF
The BetaShares POU ETF provides investors with exposure to the performance of the British pound relative to the Australian dollar.
At the end of May 2020, POU’s FUM stood at $21.32 million. With less than $100 million invested, it’s important to consider if this ETF is still too small and you should wait to buy in. If you’re worried about the size of the ETF, consider comparing it alongside some of the other Index sector ETFs, using our full list.
Are POU’s fees too high?
BetaShares charge a yearly management fee of 0.45% for the POU ETF. Meaning, with $2,000 invested for 12 months you can expect to pay a base management fee of around $9.00.
The management fee is above the average for all ETFs on our radar, but keep in mind the ETF may be able to justify it.
The BetaShares POU ETF is one for the watchlist, but if you want to access our full ETF review, simply click here to get our full report – it’s free.