Don’t you wonder if now is the time to start analysing the Russell Investments Australian Responsible Investment ETF (ASX: RARI) and ETF Securities S&P 500 High Yield Low Volatility ETF (ASX: ZYUS)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the RARI ETF a good investment? Here’s where you start…
The Russell Investments RARI ETF invests in companies that demonstrate positive environmental, social and governance (ESG) characteristics. RARI also negatively screens out companies that have significant involvement in activities that are deemed inconsistent with responsible investment considerations.
According to our most recent data, the RARI ETF had $265.41 million of money invested. With RARI’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 Australian 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.
Get our team’s RARI ETF review, available free when you click this link: access the free investment report.
A quick take of the ZYUS ETF
The ETF Securities ZYUS ETF provides investors with exposure to a portfolio of 50 high-yielding companies from the S&P 500.
With our numbers for December 2020, ZYUS’s FUM stood at $64.49 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 Multifactor sector ETFs, using our full list of ETFs.
Are the fees for the ZYUS ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.35% for the ZYUS 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.
Did you know: you can get our full ETF review of ZYUS by clicking here?