It’s time to run a ruler over BetaShares Strong Australian Dollar Fund (Hedge Fund) ETF (ASX: AUDS) and iShares Global High Yield Bond (AUD Hedged) ETF (ASX: IHHY). The ETFs invest in the Cash – Australian and Fixed interest – International sectors/industries, respectively.
The BetaShares AUDS ETF (ASX:AUDS)
The BetaShares AUDS Fund provides investors with geared exposure to the change in value of the Australian dollar, relative to the US dollar.
According to our most recent data, the AUDS ETF had $12.6 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 AUDS ETF, read our free ETF investment report once you’re done with this article.
iShares IHHY ETF (ASX:IHHY)
The iShares IHHY ETF provides investors with exposure to the performance of high-yield corporate bonds across global markets and sectors, hedged into Australian dollars. This is a simple way to get exposure to high-yield corporate bonds across global developed markets in a single fund.
With our numbers for December 2020, IHHY’s FUM stood at $77.02 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the IHHY ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.56% for the IHHY ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.20.
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 IHHY ETF report by clicking here.