In this article, we’ll try to explain why the iShares Enhanced Cash ETF (ASX: ISEC) and SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the ISEC ETF
The iShares ISEC ETF provides investors with exposure to higher-yielding, short-term money market instruments, including floating rate notes. ISEC seeks to outperform the S&P/ASX Bank Bill Index (before fees and expenses).
According to our most recent data, the ISEC ETF had $193.58 million of money invested. With ISEC’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 Cash – Australian 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.
Like the look of the ISEC ETF? Grab our ETF free investment report.
The SYI ETF – a quick look for savvy investors
The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
With our numbers for Oct 2020, SYI’s FUM stood at $171.45 million. Since the SYI’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 SYI ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.35% for the SYI ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $7.00.
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.
The SPDR SYI ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.