On the ASX, the BetaShares Sustainability leaders Diversified Bond ETF – Currency Hedged ETF (ASX: GBND) and BetaShares Crude Oil Index ETF-Currency Hedged (Synthetic) ETF (ASX: OOO) might be worth digging into in 2021.
What to know about the BetaShares GBND ETF
The BetaShares GBND ETF provides investors with exposure to a portfolio of fixed-rate, investment-grade global and Australian bonds, with a significant allocation to “green bonds” which are issued to directly fund projects that have positive environmental and/or climate benefits.
According to our most recent data, the GBND ETF had $106.39 million of money invested. With GBND’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 – International 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 GBND ETF. Click here to access our free ETF review.
The BetaShares OOO ETF – key points
The BetaShares OOO ETF provides investors with exposure to crude oil futures, hedged into Australian dollars.
With our numbers for December 2020, OOO’s FUM stood at $220.4 million. Since the OOO’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 OOO ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.69% for the OOO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $13.80.
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 OOO 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 OOO.