It’s time to run a ruler over Vanguard Australian Corporate Fixed Interest Index ETF (ASX: VACF) and Betashares Australian Strong Bear (Hedge Fund) ETF (ASX: BBOZ). The ETFs invest in the Fixed interest – Australia and Australian shares sectors/industries, respectively.
The Vanguard VACF ETF (ASX:VACF)
The Vanguard VACF ETF provides exposure to corporate bonds issued by Australia’s largest banks, financial institutions, and property trusts.
According to our most recent data, the VACF ETF had $471.78 million of money invested. With VACF’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 – Australia 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 VACF ETF, read our free ETF investment report once you’re done with this article.
Betashares BBOZ ETF (ASX:BBOZ)
The BetaShares BBOZ Fund is designed to provide protection from a declining Australian equity market. When the S&P/ASX 200 Accumulation Index falls, BBOZ aims to generate magnified returns for investors.
With our numbers for December 2020, BBOZ’s FUM stood at $337.64 million. Since the BBOZ’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 Hedge fund sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the BBOZ ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 1.38% for the BBOZ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $27.60.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free BBOZ ETF report by clicking here.