June review: The BetaShares DGGF ETF (ASX:DGGF) ETF

Getting exposure to the Diversified ETF sector has never been easier thanks to ASX ETFs like the BetaShares Ethical Diversified Growth ETF (ASX: DGGF). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.

How the DGGF ETF could be used in portfolios

The BetaShares DGGF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.

The DGGF ETF is yet to reach our FUM target

The BetaShares DGGF ETF had $3.78 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.

We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as BetaShares, to continue to operate it.

That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.

DGGF’s fees & costs explained

BetaShares charges investors a yearly management fee of 0.26% for the DGGF ETF. This means that if you invested $2,000 in DGGF for a full year, you could expect to pay management fees of around $5.20.

For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.

Bottom line

This is just a quick overview of the DGGF ETF. Before ‘testing the depth of water with both feet’ so to speak, be sure to read the DGGF ETF’s Product Disclosure Statement (PDS), available on the BetaShares website, or speak to your financial adviser. For another handy resource, take a look at our BetaShares DGGF report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

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Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

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From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

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