You might be sitting back and considering the Russell Investments High Dividend Australian Shares ETF (ASX: RDV) and thinking that January could be as good of a time as any to take closer look. Here’s how we would start our research.
Find out what the ETF does
The Russell Investments RDV ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies. This ETF tracks this Russell Australia High Dividend Index.
RDV’s FUM meets our hurdle
The Russell Investments RDV ETF had $236.21 million of money invested when we last pulled the monthly numbers. Given RDV’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
Pay attention to yearly costs & fees
Russell Investments charges investors a yearly management fee of 0.34% for the RDV ETF. This means that if you invested $2,000 in RDV for a full year, you could expect to pay management fees of around $6.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
If you’re thinking about investing in RDV, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Russell Investments RDV report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Australian shares sector to do a good comparison.