It’s time to run a ruler over BetaShares Ethical Diversified Balanced ETF (ASX: DBBF) and InvestSMART Intelligent Investor Australian Equity Income Fund (Managed Fund) ETF (ASX: INIF). The ETFs invest in the Diversified ETF and Australian shares sectors/industries, respectively.
The BetaShares DBBF ETF (ASX:DBBF)
The BetaShares DBBF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.
According to our most recent data, the DBBF ETF had $3.77 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 DBBF ETF, read our free ETF investment report once you’re done with this article.
InvestSMART INIF ETF (ASX:INIF)
The Intelligent Investor INIF Fund is an actively managed ETF, with a focus on a research-led, value investing approach. This fund also focuses on providing investors with exposure to companies with a sustainable income yield.
With our numbers for December 2020, INIF’s FUM stood at $44.22 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the INIF ETF bad?
InvestSMART, the ETF issuer, charges a yearly management fee of 0.97% for the INIF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $19.40.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free INIF ETF report by clicking here.