Getting exposure to the Fixed interest – Australia sector has never been easier thanks to ASX ETFs like the BetaShares Legg Mason Australian Bond Fund (Managed Fund) ETF (ASX: BNDS). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the BNDS ETF could be used in portfolios
The BetaShares Legg Mason BNDS Fund is an actively managed fund that aims to deliver income and maximise the investment opportunities from Australian fixed income markets.
BNDS exceeds our minimum market cap (FUM) criteria
The BetaShares BNDS ETF had $156.72 million of money invested when we last pulled the monthly numbers. Given BNDS’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 – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
BNDS’s fees & costs explained
BetaShares charges investors a yearly management fee of 0.42% for the BNDS ETF. This means that if you invested $2,000 in BNDS for a full year, you could expect to pay management fees of around $8.40.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
This is just a quick overview of the BNDS ETF. Before ‘testing the depth of water with both feet’ so to speak, be sure to read the BNDS ETF’s Product Disclosure Statement (PDS), available on the BetaShares website, or speak to your financial adviser. For another handy resource, take a look at our BetaShares BNDS report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.