In this article, we’ll try to explain why the BetaShares U.S Dollar ETF (ASX: USD) and Betashares Managed Risk Australian Share Fund (Managed Fund) ETF (ASX: AUST) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the USD ETF
The BetaShares USD ETF provides investors with exposure to the performance of the US dollar, relative to the Australian dollar.
According to our most recent data, the USD ETF had $149.3 million of money invested. With USD’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 US dollar 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 USD ETF? Grab our ETF free investment report.
The AUST ETF – a quick look for savvy investors
The BetaShares AUST Fund is an actively managed fund that passively tracks the ASX 200, while providing investors with a risk managed approach that aims to minimise volatility and protect against losses in declining markets.
With our numbers for December 2020, AUST’s FUM stood at $39.76 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 AUST ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.49% for the AUST ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.80.
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.
The Betashares AUST 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.