If you’re on the hunt for exposure to the Fixed interest – Australia sector, it could be worth adding the Russell Investments Australian Select Corporate Bond ETF (ASX: RCB) to your ASX watchlist. Let’s take a closer look at this Russell Investments ETF.
What is the RCB ETF used for?
The Russell Investments RCB ETF is a portfolio of high-quality Australian fixed income securities that meet a range of size, credit and maturity selection criteria.
Keep an eye on FUM
The Russell Investments RCB ETF had $241.06 million of money invested when we last pulled the monthly numbers. Given RCB’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 Fixed interest – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
Russell Investments charges investors a yearly management fee of 0.28% for the RCB ETF. This means that if you invested $2,000 in RCB for a full year, you could expect to pay management fees of around $5.60.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the RCB ETF. Before doing anything, take a look at our Russell Investments RCB report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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