It’s time to run a ruler over ETF Securities ROBO Global Robotics and Automation ETF (ASX: ROBO) and BetaShares Australian High Interest Cash ETF (ASX: AAA). The ETFs invest in the International shares and Cash – Australian sectors/industries, respectively.
The ETF Securities ROBO ETF (ASX:ROBO)
The ETFS ROBO ETF provides investors with exposure to the global value chain of robotics, automation and artificial intelligence (RAAI) related companies. Some investors consider RAAI-related companies as disruptors to industries across the globe and thus, a ‘thematic’ or ‘megatrend’ to invest in.
According to our most recent data, the ROBO ETF had $125.33 million of money invested. With ROBO’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws 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 lowers the chance that the ETF issuer will close the ETF.
To learn more about the ROBO ETF, read our free ETF investment report once you’re done with this article.
BetaShares AAA ETF (ASX:AAA)
The BetaShares AAA ETF provides investors with exposure to Australian cash, without the need to open a bank account or have capital locked up in a term deposit.
With our numbers for July 2020, AAA’s FUM stood at $2135.47 million. Since the AAA’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the AAA ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.18% for the AAA ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $3.60.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free AAA ETF report by clicking here.