On the ASX, the Betashares S&P/ASX Australian Technology ETF (ASX: ATEC) and iShares J.P.Morgan USD Emerging Markets Bond (AUD Hedged) ETF (ASX: IHEB) might be worth digging into in 2021.
What to know about the Betashares ATEC ETF
The BetaShares ATEC ETF provides exposure to the top Australian technology companies that are listed on the ASX. This is a low-cost way to access the Australian technology sector through a single fund.
According to our most recent data, the ATEC ETF had $194.02 million of money invested. With ATEC’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.
Keep learning about the ATEC ETF. Click here to access our free ETF review.
The iShares IHEB ETF – key points
The iShares IHEB ETF provides investors with exposure to the performance of global emerging markets bonds that are US dollar-denominated, hedged back into Australian dollars.
With our numbers for July 2021, IHEB’s FUM stood at $45.56 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 IHEB ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.51% for the IHEB ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $10.20.
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 IHEB 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 IHEB.
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