Don’t you wonder if now is the time to start analysing the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) and Betashares Australian Equities Bear (Hedge Fund) ETF (ASX: BEAR)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and Australian shares sectors, respectively.
Is the VAF ETF a good investment? Here’s where you start…
The Vanguard VAF ETF provides investors with exposure to a portfolio of Australian Commonwealth Government bonds, state government bonds and bonds from treasury corporations, as well as some investment-grade corporate debt.
According to our most recent data, the VAF ETF had $1552.46 million of money invested. With VAF’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.
Get our team’s VAF ETF review, available free when you click this link: access the free investment report.
A quick take of the BEAR ETF
The BetaShares BEAR Fund is designed to provide inverse or opposite exposure to the largest Australian shares, based on market capitalisation. When the S&P/ASX 200 Accumulation Index falls, BEAR aims to generate positive returns for investors.
With our numbers for December 2020, BEAR’s FUM stood at $77.11 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 Hedge fund sector ETFs, using our full list of ETFs.
Are the fees for the BEAR ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 1.38% for the BEAR 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: you can get our full ETF review of BEAR by clicking here?