On the ASX, the BetaShares Global Banks ETF – Currency Hedged ETF (ASX: BNKS) and iShares S&P Midcap ETF (ASX: IJH) might be worth digging into in 2020.
What to know about the BetaShares BNKS ETF
If you’re looking for an ETF made up entirely of global banks (ex-Australia), then BNKS provides a solution. This ETF tracks the Nasdaq Global ex-Australia Banks Hedged AUD Index.
According to our most recent data, the BNKS ETF had $25.72 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 BNKS ETF. Click here to access our free ETF review.
The iShares IJH ETF – key points
The iShares IJH ETF provides investors with exposure to mid-cap US companies. This is a low-cost way to access a specific segment of the US market through a single fund.
With our numbers for Oct 2020, IJH’s FUM stood at $125.28 million. Since the IJH’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 IJH ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.07% for the IJH 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.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
Before rushing out and investing in the IJH 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 IJH.
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