On the ASX, the ETF Securities S&P 500 High Yield Low Volatility ETF (ASX: ZYUS) and Schroder Investment Management Australia Limited Real Return Fund (Managed Fund) ETF (ASX: GROW) might be worth digging into in 2020.
What to know about the ETF Securities ZYUS ETF
The ETF Securities ZYUS ETF provides investors with exposure to a portfolio of 50 high-yielding companies from the S&P 500.
According to our most recent data, the ZYUS ETF had $60.26 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.
Keep learning about the ZYUS ETF. Click here to access our free ETF review.
The Schroder Investment Management Australia Limited GROW ETF – key points
The Schroder GROW Fund is a multi-asset class, actively-managed portfolio of global assets. The fund aims to deliver a return of 5% per annum above inflation (before fees), over a rolling 3-year period.
With our numbers for Oct 2020, GROW’s FUM stood at $38.88 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the GROW ETF bad?
Schroder Investment Management Australia Limited, the ETF issuer, charges a yearly management fee of 0.9% for the GROW ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $18.00.
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.
Before rushing out and investing in the GROW fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on GROW.