Don’t you wonder if now is the time to start analysing the iShares Core Global Corporate Bond (AUD Hedged) ETF (ASX: IHCB) and VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – International and International shares sectors, respectively.
Is the IHCB ETF a good investment? Here’s where you start…
The iShares IHCB ETF provides investors with access to the performance of investment-grade corporate bonds across global markets and sectors, hedged into Australian dollars. This is a relatively low-cost way to get exposure to global investment-grade corporate bonds in a single fund.
According to our most recent data, the IHCB ETF had $345.58 million of money invested. With IHCB’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 – International 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 IHCB ETF review, available free when you click this link: access the free investment report.
A quick take of the QUAL ETF
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.
With our numbers for Oct 2020, QUAL’s FUM stood at $1305.62 million. Since the QUAL’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 Quality factor sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the QUAL ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.4% for the QUAL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.00.
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.
Did you know: you can get our full ETF review of QUAL by clicking here?