If you’re considering getting exposure to the Fixed interest – Australia sector, the BetaShares Australian Investment Grade Bond ETF (ASX: CRED) might be one ASX ETF to watch in February.
How the CRED ETF fits into an ASX portfolio
The BetaShares CRED Fund provides investors with exposure to a portfolio a portfolio of investment-grade, fixed-rate Australian corporate bonds.
CRED meets our minimum level for FUM
The BetaShares CRED ETF had $469.91 million of money invested when we last pulled the monthly numbers. Given CRED’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Fixed interest – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
BetaShares charges investors a yearly management fee of 0.25% for the CRED ETF. This means that if you invested $2,000 in CRED for a full year, you could expect to pay management fees of around $5.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Before buying any ETF based on what you read here on Best ETFs, check out our BetaShares CRED report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.