Don’t you wonder if now is the time to start analysing the Pinnacle Investment Management aShares Global Dynamic Income Fund (Managed Fund) ETF (ASX: SAVE) and BetaShares Australian Government Bond ETF (ASX: AGVT)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Multi-Asset and Fixed interest – Australia sectors, respectively.
Is the SAVE ETF a good investment? Here’s where you start…
The SAVE ETF is issued by Pinnacle and managed by Omega Global Investors and is designed to achieve a 4% annual return by investing in a variety of income-generating securities, such as shares, fixed income and currency exposures. We categorise it as a multi-asset fund.
According to our most recent data, the SAVE ETF had $5.09 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. 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 general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Get our team’s SAVE ETF review, available free when you click this link: access the free investment report.
A quick take of the AGVT ETF
The BetaShares AGVT ETF provides investors with exposure to a portfolio of high-quality bonds issued by Australian federal and state governments, supranational banks and sovereign agencies.
With our numbers for July 2020, AGVT’s FUM stood at $12.36 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
Are the fees for the AGVT ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.22% for the AGVT ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $4.40.
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: you can get our full ETF review of AGVT by clicking here?