It’s time to run a ruler over iShares S&P Asia 50 ETF (ASX: IAA) and Betashares FTSE RAFI Australia 200 ETF (ASX: QOZ). The ETFs invest in the International shares and Australian shares sectors/industries, respectively.
The iShares IAA ETF (ASX:IAA)
The iShares IAA ETF provides exposure to the performance of 50 large, established Asian companies listed on the stock exchanges of China, Hong Kong, South Korea, Singapore, Taiwan, and Macau.
According to our most recent data, the IAA ETF had $742.12 million of money invested. With IAA’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 International 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.
To learn more about the IAA ETF, read our free ETF investment report once you’re done with this article.
Betashares QOZ ETF (ASX:QOZ)
The BetaShares QOZ ETF provides exposure to a ‘fundamentally weighted’ index of 200 large Australian shares. This ETF focuses on weighting the portfolio with a focus on ‘economic importance’ rather than market capitalisation, while also aiming to outperform traditional market-cap weighted indices.
With our numbers for December 2020, QOZ’s FUM stood at $318.2 million. Since the QOZ’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 QOZ ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.40% for the QOZ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.00.
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 QOZ ETF report by clicking here.