Is it time to put the HJPN and QCB ETFs on your long-term watchlist?

Are you sitting back and thinking it could be time to start analysing the BetaShares Japan ETF – Currency Hedged ETF (ASX: HJPN) and BetaShares Commodities Basket ETF-Currency Hedged (Synthetic) ETF (ASX: QCB)? These two ASX ETFs aim to provide conveninent exposure to the International shares and Commodities sectors, respectively.

Why investors choose the HJPN ETF

The BetaShares HJPN ETF provides investors with exposure to leading Japanese equities, that generate most of their revenue from outside Japan. This ETF is hedged into AUD, to reduce exposure to the Japanese Yen.

As at the end of last month, the HJPN ETF had $29.24 million of money invested. Since its funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small. 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 rule of thumb, especially if the ETF issuer/provider is committed to growing the ETF’s FUM to the point where it becomes profitable.

Fees & costs

The yearly management fee on the HJPN ETF is 0.58%. The issuer, BetaShares, takes this out automatically.

What this fee means is, if you invested, say, $2,000 in the HJPN ETF for a full year you could expect to pay management fees of around $11.60. 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 HJPN Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it has the complete and up-to-date information.

Make sure you check out our HJPN ETF report, available free when you clock here: access the free investment report.

Our expert analyst just named 3 stocks to buy right now

rask invest stocks to buy now

 

A look at the QCB ETF

The BetaShares QCB ETF provides investors with exposure to the performance of a broad basket of commodities, hedged into Australian dollars.

At the end of May 2020, QCB’s FUM stood at $6.3 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 QCB’s fees too high?

BetaShares charge a yearly management fee of 0.69% for the QCB ETF. Meaning, with $2,000 invested for 12 months you can expect to pay a base management fee of around $13.80.

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.

If you like what you’re reading, access our full review of the QCB ETF by clicking here

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

© Rask Australia 2020

Join 20,000+ smart investors

Join the Rask Australia mailing and we’ll send you free investment reports, podcasts, expert insights, investing courses, ASX news and lots, lots more. All free. 

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

feedback-icon

What can we do better? Please give us us some feedback :)

We care about your experience, please let us know if you have any suggestions to improve our site.