On the ASX, the Russell Investments Australian Select Corporate Bond ETF (ASX: RCB) and BetaShares BetaShares Global Quality Leaders ETF Currency Hedged (ASX: HQLT) might be worth digging into in 2021.
What to know about the Russell Investments RCB ETF
The Russell Investments RCB ETF is a portfolio of high-quality Australian fixed income securities that meet a range of size, credit and maturity selection criteria.
According to our most recent data, the RCB ETF had $253.49 million of money invested. With RCB’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 Fixed interest – Australia 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.
Keep learning about the RCB ETF. Click here to access our free ETF review.
The BetaShares HQLT ETF – key points
The BetaShares HQLT ETF seeks to provide investors with exposure to a basket of 150 companies that exhibit factors which make them ‘high quality’. The HQLT is hedged to Australian dollars.
With our numbers for Dec 2020, HQLT’s FUM stood at $10.82 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 Quality factor sector ETFs, using our full list of ETFs.
Are the fees for the HQLT ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.35% for the HQLT ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $7.00.
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.
Before rushing out and investing in the HQLT fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on HQLT.