On the ASX, the BetaShares BetaShares Global Sustainability Leaders ETF – CH (ASX: HETH) and BetaShares Active Australian Hybrids Fund (Managed Fund) ETF (ASX: HBRD) might be worth digging into in 2021.
What to know about the BetaShares HETH ETF
The BetaShares HETH ETF provides investors with a currency-hedged exposure to a diversified portfolio of global companies that fit within the environmental, social and governance (ESG) framework set, along with screening out companies with significant exposure to fossil fuels. HETH has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program. The HETH ETF invests in teh BetaShares ETHI ETF.
According to our most recent data, the HETH ETF had $85.7 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Keep learning about the HETH ETF. Click here to access our free ETF review.
The BetaShares HBRD ETF – key points
The BetaShares HBRD Fund provides investors with exposure to hybrids. Think of hybrids this way: companies can raise capital by either issuing debt or equity. Debt and equity each have different characteristics, advantages and disadvantages. Hybrid securities have some characteristics of both.
With our numbers for December 2020, HBRD’s FUM stood at $963.23 million. Since the HBRD’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the HBRD ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.55% for the HBRD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.00.
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.
Before rushing out and investing in the HBRD fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on HBRD.