It’s time to run a ruler over Russell Investments Australian Government Bond ETF (ASX: RGB) and ETF Securities ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS). The ETFs invest in the Fixed interest – Australia and International shares sectors/industries, respectively.
The Russell Investments RGB ETF (ASX:RGB)
The Russell Investments RGB ETF is a portfolio of Australian government fixed-income securities that meet a range of size and maturity selection criteria.
According to our most recent data, the RGB ETF had $84.82 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.
To learn more about the RGB ETF, read our free ETF investment report once you’re done with this article.
ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX:LNAS)
The ETF Securities Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS) ETF is an ETF designed to provide amplified or ‘geared’ exposure to the popular NASDAQ 100 stock market index.
With our numbers for Dec 2020, LNAS’s FUM stood at $6.27 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 LNAS ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 1.00% for the LNAS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $20.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free LNAS ETF report by clicking here.