The Fidante Partners Limited ActiveX Ardea Real Outcome Bond Fund (Managed Fund) ETF (ASX: XARO) could be one to watch in November and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the Fidante Partners Limited XARO ETF actually does
The ActiveX Ardea XARO Fund provides investors with exposure to an actively managed portfolio of fixed income products, particularly government bonds, while implementing risk management strategies that aim to provide protection from interest rate fluctuations and general market volatility.
XARO meets our minimum FUM criteria
The Fidante Partners Limited XARO ETF had $220.3 million of money invested when we last pulled the monthly numbers. Given XARO’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 – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget XARO’s fees
Fidante Partners Limited charges investors a yearly management fee of 0.5% for the XARO ETF. This means that if you invested $2,000 in XARO for a full year, you could expect to pay management fees of around $10.00.
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.
What to do next
If you’re weighing up investing in the XARO ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free Fidante Partners Limited XARO report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the Fixed interest – International sector to compare your options.
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