Don’t you wonder if now is the time to start analysing the Betashares S&P/ASX Australian Technology ETF (ASX: ATEC) and iShares J.P.Morgan USD Emerging Markets Bond (AUD Hedged) ETF (ASX: IHEB)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and Fixed interest – International sectors, respectively.
Is the ATEC ETF a good investment? Here’s where you start…
The BetaShares ATEC ETF provides exposure to the top Australian technology companies that are listed on the ASX. This is a low-cost way to access the Australian technology sector through a single fund.
According to our most recent data, the ATEC ETF had $133.75 million of money invested. With ATEC’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 ATEC ETF review, available free when you click this link: access the free investment report.
A quick take of the IHEB ETF
The iShares IHEB ETF provides investors with exposure to the performance of global emerging markets bonds that are US dollar-denominated, hedged back into Australian dollars.
With our numbers for Oct 2020, IHEB’s FUM stood at $34.86 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the IHEB ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.51% for the IHEB ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $10.20.
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: you can get our full ETF review of IHEB by clicking here?