On the ASX, the BetaShares Ethical Diversified Balanced ETF (ASX: DBBF) and InvestSMART Intelligent Investor Australian Equity Income Fund (Managed Fund) ETF (ASX: INIF) might be worth digging into in 2021.
What to know about the BetaShares DBBF ETF
The BetaShares DBBF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.
According to our most recent data, the DBBF ETF had $3.69 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Keep learning about the DBBF ETF. Click here to access our free ETF review.
The InvestSMART INIF ETF – key points
The Intelligent Investor INIF Fund is an actively managed ETF, with a focus on a research-led, value investing approach. This fund also focuses on providing investors with exposure to companies with a sustainable income yield.
With our numbers for Oct 2020, INIF’s FUM stood at $33.36 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 INIF ETF bad?
InvestSMART, the ETF issuer, charges a yearly management fee of 0.97% for the INIF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $19.40.
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.
Before rushing out and investing in the INIF fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on INIF.