In this article, we’ll try to explain why the Betashares Australian Strong Bear (Hedge Fund) ETF (ASX: BBOZ) and iShares Core MSCI World All Cap AUD Hedged ETF (ASX: IHWL) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the BBOZ ETF
The BetaShares BBOZ Fund is designed to provide protection from a declining Australian equity market. When the S&P/ASX 200 Accumulation Index falls, BBOZ aims to generate magnified returns for investors.
According to our most recent data, the BBOZ ETF had $337.64 million of money invested. With BBOZ’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.
Like the look of the BBOZ ETF? Grab our ETF free investment report.
The IHWL ETF – a quick look for savvy investors
The iShares IHWL ETF provides investors with exposure to a diversified portfolio of global companies. This is a low-cost way to access a variety of global companies through a single fund.
With our numbers for December 2020, IHWL’s FUM stood at $245.46 million. Since the IHWL’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the IHWL ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.12% for the IHWL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $2.40.
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.
The iShares IHWL ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.