It’s time to run a ruler over BetaShares India Quality ETF (ASX: IIND) and Russell Investments Australian Semi-Government Bond ETF (ASX: RSM). The ETFs invest in the International shares and Fixed interest – Australia sectors/industries, respectively.
The BetaShares IIND ETF (ASX:IIND)
For investors looking for exposure to the Indian market, IIND is one of the only Australian ETFs that provides this exposure. IIND invests in 30 of the leading Indian companies, based on a quality approach, rather than market capitalisation.
According to our most recent data, the IIND ETF had $36.04 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.
To learn more about the IIND ETF, read our free ETF investment report once you’re done with this article.
Russell Investments RSM ETF (ASX:RSM)
The Russell Investments RSM ETF is a portfolio of Australian state government fixed-income securities that meet a range of size and maturity selection criteria.
With our numbers for Dec 2020, RSM’s FUM stood at $69.91 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 RSM ETF bad?
Russell Investments, the ETF issuer, charges a yearly management fee of 0.26% for the RSM ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.20.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free RSM ETF report by clicking here.