Don’t you wonder if now is the time to start analysing the iShares Core S&P/ASX 200 ETF (ASX: IOZ) and BetaShares S&P 500 Yield Maximiser Fund (Managed Fund) ETF (ASX: UMAX)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the IOZ ETF a good investment? Here’s where you start…
The iShares IOZ ETF provides exposure to the largest 200 Australian shares, based on market capitalisation. This is a low-cost way to access top Australian companies through a single fund.
According to our most recent data, the IOZ ETF had $3675.92 million of money invested. With IOZ’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 IOZ ETF review, available free when you click this link: access the free investment report.
A quick take of the UMAX ETF
The BetaShares UMAX ETF is an actively managed portfolio that provides investors with exposure to US equities, with a focus on enhancing the ETFs dividend yield using a ‘covered call’ strategy.
With our numbers for Dec 2020, UMAX’s FUM stood at $91.01 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 Yield/income sector ETFs, using our full list of ETFs.
Are the fees for the UMAX ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.79% for the UMAX ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $15.80.
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.
Did you know: you can get our full ETF review of UMAX by clicking here?