Don’t you wonder if now is the time to start analysing the BetaShares Active Australian Hybrids Fund (Managed Fund) ETF (ASX: HBRD) and BetaShares Agriculture ETF-Currency Hedged (Synthetic) ETF (ASX: QAG)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and Commodities sectors, respectively.
Is the HBRD ETF a good investment? Here’s where you start…
The BetaShares HBRD Fund provides investors with exposure to hybrids. Think of hybrids this way: companies can raise capital by either issuing debt or equity. Debt and equity each have different characteristics, advantages and disadvantages. Hybrid securities have some characteristics of both.
According to our most recent data, the HBRD ETF had $880.55 million of money invested. With HBRD’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 Fixed interest – Australia 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 HBRD ETF review, available free when you click this link: access the free investment report.
A quick take of the QAG ETF
The BetaShares QAG ETF provides investors with exposure to a basket of the most significant global agricultural commodities, hedged into Australian dollars.
With our numbers for Oct 2020, QAG’s FUM stood at $6.07 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the QAG ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.69% for the QAG ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $13.80.
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 QAG by clicking here?