Don’t you wonder if now is the time to start analysing the iShares S&P 500 ETF (ASX: IVV) and BetaShares U.S Dollar ETF (ASX: USD)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and US dollar sectors, respectively.
Is the IVV ETF a good investment? Here’s where you start…
The iShares IVV ETF provides investors with exposure to the largest 500 US stocks, by market capitalisation. This is a low-cost way to access leading US companies through a single fund.
According to our most recent data, the IVV ETF had $3292.43 million of money invested. With IVV’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 International shares 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 IVV ETF review, available free when you click this link: access the free investment report.
A quick take of the USD ETF
The BetaShares USD ETF provides investors with exposure to the performance of the US dollar, relative to the Australian dollar.
With our numbers for Oct 2020, USD’s FUM stood at $211.49 million. Since the USD’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 USD ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.45% for the USD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.00.
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 USD by clicking here?
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