In this article, we’ll try to explain why the InvestSMART Intelligent Investor Ethical Share Fund (Managed Fund) ETF (ASX: INES) and Switzer Dividend Growth Fund (Managed Fund) ETF (ASX: SWTZ) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the INES ETF
The Intelligent Investor INES Fund is an actively managed ETF, with a focus on Environmental, Social and Governance (ESG) factors. The fund aims to achieve medium to long-term capital growth.
According to our most recent data, the INES ETF had $26.14 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.
Like the look of the INES ETF? Grab our ETF free investment report.
The SWTZ ETF – a quick look for savvy investors
The Switzer SWTZ Fund is an actively-managed fund, with the aim to provide investors with capital growth and a tax-effective income stream.
With our numbers for Dec 2020, SWTZ’s FUM stood at $80.85 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 SWTZ ETF bad?
Switzer, the ETF issuer, charges a yearly management fee of 0.89% for the SWTZ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $17.80.
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.
The Switzer SWTZ ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.