It’s time to run a ruler over VanEck Video Gaming and eSports ETF (ASX: ESPO) and Betashares Australian Dividend Harvester Fund (Managed Fund) ETF (ASX: HVST). The ETFs invest in the International shares and Australian shares sectors/industries, respectively.
The VanEck Video Gaming and eSports ETF (ASX: ESPO)
The ESPO ETF invests in the world’s largest companies involved in global video game development, eSports, related hardware, and software by aiming to track the performance of the MVIS Global Video Gaming and eSports Index.
According to our most recent data, the ESPO ETF had $57.51 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.
To learn more about the ESPO ETF, read our free ETF investment report once you’re done with this article.
Betashares HVST ETF (ASX:HVST)
With the goal of providing a franked income stream of at least 1.5x the yield of the broad Australian sharemarket on an annual basis, BetaShares HVST ETF aims to pay income to investors monthly. Please note that HVST does not aim to track an index.
With our numbers for December 2020, HVST’s FUM stood at $132.57 million. Since the HVST’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 Yield/income sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the HVST ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.90% for the HVST ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $18.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free HVST ETF report by clicking here.