It’s time to run a ruler over VanEck Vectors Australian Subordinated Debt ETF (ASX: SUBD) and BetaShares Strong Australian Dollar Fund (Hedge Fund) ETF (ASX: AUDS). The ETFs invest in the Fixed interest – Australia and Cash – Australian sectors/industries, respectively.
The VanEck SUBD ETF (ASX:SUBD)
The VanEck SUBD ETF invests in a portfolio of Australian dollar-denominated subordinated bonds from a range of banks and insurance companies.
According to our most recent data, the SUBD ETF had $120.43 million of money invested. With SUBD’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 – Australia 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.
To learn more about the SUBD ETF, read our free ETF investment report once you’re done with this article.
BetaShares AUDS ETF (ASX:AUDS)
The BetaShares AUDS Fund provides investors with geared exposure to the change in value of the Australian dollar, relative to the US dollar.
With our numbers for Oct 2020, AUDS’s FUM stood at $9.39 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 Hedge fund sector ETFs, using our full list of ETFs.
Are the fees for the AUDS ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 1.38% for the AUDS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $27.60.
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 AUDS ETF report by clicking here.