In this article, we’ll try to explain why the Betashares Australian Dividend Harvester Fund (Managed Fund) ETF (ASX: HVST) and SPDR MSCI World Quality Mix Fund ETF (ASX: QMIX) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the HVST ETF
With the goal of providing a franked income stream of at least 1.5x the yield of the broad Australian sharemarket on an annual basis, BetaShares HVST ETF aims to pay income to investors monthly. Please note that HVST does not aim to track an index.
According to our most recent data, the HVST ETF had $132.57 million of money invested. With HVST’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 HVST ETF? Grab our ETF free investment report.
The QMIX ETF – a quick look for savvy investors
The QMIX ETF invests in mid-cap and large (blue chip) shares in over 20 developed markets but uses a multifactor approach to attempt to reduce risk.
With our numbers for December 2020, QMIX’s FUM stood at $23.71 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 Quality factor sector ETFs, using our full list of ETFs.
Are the fees for the QMIX ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.40% for the QMIX 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.
The SPDR QMIX 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.