Don’t you wonder if now is the time to start analysing the iShares Government Inflation ETF (ASX: ILB) and SPDR S&P 500 Trust ETF (ASX: SPY)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and International shares sectors, respectively.
Is the ILB ETF a good investment? Here’s where you start…
The iShares ILB ETF provides investors with exposure to the performance of a segment of the Australian bond market comprised of inflation-linked fixed income securities.
According to our most recent data, the ILB ETF had $252.91 million of money invested. With ILB’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 Fixed interest – Australia 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.
Get our team’s ILB ETF review, available free when you click this link: access the free investment report.
A quick take of the SPY ETF
The SPDR SPY ETF is the oldest ETF in the world and provides exposure to the 500 largest US-listed shares. These 500 shares represent approximately 80% of the total market capitalisation of the US stock market.
With our numbers for December 2020, SPY’s FUM stood at $54.94 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 SPY ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.09% for the SPY ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $1.80.
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 SPY by clicking here?