It’s time to run a ruler over BetaShares Legg Mason Real Income Fund (Managed Fund) ETF (ASX: RINC) and BetaShares BetaShares Global Sustainability Leaders ETF – CH (ASX: HETH). The ETFs invest in the Australian shares and International shares sectors/industries, respectively.
The BetaShares RINC ETF (ASX:RINC)
The BetaShares Legg Mason RINC ETF is an actively managed fund that invests in companies that own physical assets, like A-REITs, utilities and infrastructure. These companies are expected to grow revenues and profits overtime and provide sustainable dividend income to investors.
According to our most recent data, the RINC ETF had $42.17 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the RINC ETF, read our free ETF investment report once you’re done with this article.
BetaShares Global Sustainability Leaders ETF – CH (ASX:HETH)
The BetaShares HETH ETF provides investors with a currency-hedged exposure to a diversified portfolio of global companies that fit within the environmental, social and governance (ESG) framework set, along with screening out companies with significant exposure to fossil fuels. HETH has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program. The HETH ETF invests in teh BetaShares ETHI ETF.
With our numbers for Oct 2020, HETH’s FUM stood at $59.47 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 Ethical sector ETFs, using our full list of ETFs.
Are the fees for the HETH ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.62% for the HETH ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $12.40.
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 that you get access to our free investment report on Best ETFs Australia? View the free HETH ETF report by clicking here.