In this article, we’ll try to explain why the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) and Magellan Airlie Australian Share Fund (Managed Fund) (ASX: AASF) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the RBTZ ETF
The BetaShares RBTZ ETF provides investors with exposure to leading global companies involved in the production and utilisation of robotics and artificial intelligence – a rising global trend.
According to our most recent data, the RBTZ ETF had $107.54 million of money invested. With RBTZ’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.
Like the look of the RBTZ ETF? Grab our ETF free investment report.
The AASF ETF – a quick look for savvy investors
The Airlie Australian Share Fund invests in 15-35 companies on the Australian stock exchange using a ‘best ideas’ approach to active investing. The fund aims to have no more than 10% of its portfolio in cash. The AASF fund aims to provide long-term capital growth and regular income to their investors.
With our numbers for December 2020, AASF’s FUM stood at $45.54 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 AASF ETF bad?
Magellan, the ETF issuer, charges a yearly management fee of 0.78% for the AASF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $15.60.
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 Magellan AASF 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.