Don’t you wonder if now is the time to start analysing the Betashares Managed Risk Australian Share Fund (Managed Fund) ETF (ASX: AUST) and iShares S&P 500 AUD Hedged ETF (ASX: IHVV)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the AUST ETF a good investment? Here’s where you start…
The BetaShares AUST Fund is an actively managed fund that passively tracks the ASX 200, while providing investors with a risk managed approach that aims to minimise volatility and protect against losses in declining markets.
According to our most recent data, the AUST ETF had $39.76 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.
Get our team’s AUST ETF review, available free when you click this link: access the free investment report.
A quick take of the IHVV ETF
The iShares IHVV ETF provides investors with exposure to the largest 500 US companies. This is a low-cost way to access leading US companies through a single fund.
With our numbers for December 2020, IHVV’s FUM stood at $746.98 million. Since the IHVV’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 IHVV ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.10% for the IHVV ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $2.00.
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: you can get our full ETF review of IHVV by clicking here?