Don’t you wonder if now is the time to start analysing the Betashares S&P/ASX 200 Resources Sector ETF (ASX: QRE) and BetaShares Strong US Dollar Fund (Hedge Fund) ETF (ASX: YANK)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and US dollar sectors, respectively.
Is the QRE ETF a good investment? Here’s where you start…
The BetaShares QRE ETF provides a targeted exposure to some of the largest companies in the Australian resources sector and aims to track the Solactive Australia Resources Sector Index.
According to our most recent data, the QRE ETF had $79.29 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.
Get our team’s QRE ETF review, available free when you click this link: access the free investment report.
A quick take of the YANK ETF
The BetaShares YANK Fund provides investors with geared exposure to the change in value of the US dollar, relative to the Australian dollar.
With our numbers for Dec 2020, YANK’s FUM stood at $7.25 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 Hedge fund sector ETFs, using our full list of ETFs.
Are the fees for the YANK ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 1.38% for the YANK ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $27.60.
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 YANK by clicking here?