If you’re on the hunt for exposure to the Australian shares sector, it could be worth adding the Betashares Australian Dividend Harvester Fund (Managed Fund) ETF (ASX: HVST) to your ASX watchlist. Let’s take a closer look at this Betashares ETF.
What is the HVST ETF used for?
With the goal of providing a franked income stream of at least 1.5x the yield of the broad Australian sharemarket on an annual basis, BetaShares HVST ETF aims to pay income to investors monthly. Please note that HVST does not aim to track an index.
Keep an eye on FUM
The Betashares HVST ETF had $122.07 million of money invested when we last pulled the monthly numbers. Given HVST’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
Betashares charges investors a yearly management fee of 0.9% for the HVST ETF. This means that if you invested $2,000 in HVST for a full year, you could expect to pay management fees of around $18.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% 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.
These are just some of the considerations or factors you would need to look at when weighing up the HVST ETF. Before doing anything, take a look at our Betashares HVST report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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