On the ASX, the iShares Global 100 AUD Hedged ETF (ASX: IHOO) and Russell Investments Australian Government Bond ETF (ASX: RGB) might be worth digging into in 2021.
What to know about the iShares IHOO ETF
The iShares IHOO ETF provides investors with exposure to the largest 100 global companies. This is a low-cost way to access a variety of global companies through a single fund.
According to our most recent data, the IHOO ETF had $107.5 million of money invested. With IHOO’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 International 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.
Keep learning about the IHOO ETF. Click here to access our free ETF review.
The Russell Investments RGB ETF – key points
The Russell Investments RGB ETF is a portfolio of Australian government fixed-income securities that meet a range of size and maturity selection criteria.
With our numbers for Dec 2020, RGB’s FUM stood at $84.82 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 RGB ETF bad?
Russell Investments, the ETF issuer, charges a yearly management fee of 0.24% for the RGB ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $4.80.
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.
Before rushing out and investing in the RGB 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 RGB.
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