Don’t you wonder if now is the time to start analysing the SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) and iShares Core Cash ETF (ASX: BILL)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and Cash – Australian sectors, respectively.
Is the SYI ETF a good investment? Here’s where you start…
The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
According to our most recent data, the SYI ETF had $166.16 million of money invested. With SYI’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 Australian 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.
Get our team’s SYI ETF review, available free when you click this link: access the free investment report.
A quick take of the BILL ETF
The iShares BILL ETF provides investors with exposure to short-term Australian dollar-denominated bank bills with term to maturities of up to three months.
With our numbers for July 2020, BILL’s FUM stood at $541.99 million. Since the BILL’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 BILL ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.07% for the BILL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $1.40.
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 BILL by clicking here?