What’s up with the Russell Investments RGB ETF (ASX:RGB)?

If you’re looking for an ASX ETF in the Fixed interest – Australia sector, chances are, the Russell Investments Australian Government Bond ETF (ASX: RGB) is an ETF you’re considering. Here’s what you need to know.

How ASX investors can use the RGB ETF

The Russell Investments RGB ETF is a portfolio of Australian government fixed-income securities that meet a range of size and maturity selection criteria.

The RGB ETF is yet to reach scale

The Russell Investments RGB ETF had $85.09 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.

We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as Russell Investments, to continue to operate it.

That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.

RGB ETF fees explained

Russell Investments charges investors a yearly management fee of 0.24% for the RGB ETF. This means that if you invested $2,000 in RGB for a full year, you could expect to pay management fees of around $4.80.

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.

Putting it all together

If you’re weighing up investing in RGB, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Russell Investments RGB report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Fixed interest – Australia sector to compare your options.

[ls_content_block id=”4954″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report, and 24/7 access to the Rask community, for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.