On the ASX, the SPDR Dow Jones Global Select Real Estate Fund ETF (ASX: DJRE) and iShares Enhanced Cash ETF (ASX: ISEC) might be worth digging into in 2021.
What to know about the SPDR DJRE ETF
The DJRE ETF by SPDR invests in global shares/securities of listed real estate investment trusts (REITs). Investors can use these property-focused ETFs to get global exposure to a broad basket of trusts and companies exposed to property, including office spaces, commercial rental spaces and construction projects.
According to our most recent data, the DJRE ETF had $339.85 million of money invested. With DJRE’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the International shares sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.
Keep learning about the DJRE ETF. Click here to access our free ETF review.
The iShares ISEC ETF – key points
The iShares ISEC ETF provides investors with exposure to higher-yielding, short-term money market instruments, including floating rate notes. ISEC seeks to outperform the S&P/ASX Bank Bill Index (before fees and expenses).
With our numbers for December 2020, ISEC’s FUM stood at $204.17 million. Since the ISEC’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 ISEC ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.12% for the ISEC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $2.40.
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 ISEC 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 ISEC.
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