On the ASX, the InvestSMART Intelligent Investor Australian Equity Income Fund (Managed Fund) ETF (ASX: INIF) and SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) might be worth digging into in 2021.
What to know about the InvestSMART INIF ETF
The Intelligent Investor INIF Fund is an actively managed ETF, with a focus on a research-led, value investing approach. This fund also focuses on providing investors with exposure to companies with a sustainable income yield.
According to our most recent data, the INIF ETF had $44.22 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.
Keep learning about the INIF ETF. Click here to access our free ETF review.
The SPDR SYI ETF – key points
The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
With our numbers for December 2020, SYI’s FUM stood at $203.9 million. Since the SYI’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 SYI ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.35% for the SYI ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $7.00.
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.
Before rushing out and investing in the SYI 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 SYI.