Don’t you wonder if now is the time to start analysing the SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) and Betashares Managed Risk Australian Share Fund (Managed Fund) ETF (ASX: AUST)? These Exchange-Traded Funds (ETFs) operate in the Australian shares sector, a key sector for diversified portfolios.
Is the SYI ETF a good investment? Here’s where you start…
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.
According to our most recent data, the SYI ETF had $171.45 million of money invested. With SYI’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 Australian 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 SYI ETF review, available free when you click this link: access the free investment report.
A quick take of the AUST ETF
The BetaShares AUST Fund is an actively managed fund that passively tracks the ASX 200, while providing investors with a risk managed approach that aims to minimise volatility and protect against losses in declining markets.
With our numbers for Oct 2020, AUST’s FUM stood at $47.91 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the AUST ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.49% for the AUST ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.80.
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 AUST by clicking here?