If you’re considering getting exposure to the International shares sector, the BetaShares Geared US Equity Fund Currency Hedged (Hedge Fund) ETF (ASX: GGUS) might be one ASX ETF to watch in November.
How the GGUS ETF fits into an ASX portfolio
The BetaShares GGUS Fund is an internally geared fund, investing in the largest 500 US-listed companies by market capitalisation.
GGUS uses investor capital and borrows additional funds to invest in the S&P 500 Index. GGUS provides investors with magnified gains when the US stock market rises, and magnified losses when the market falls.
GGUS meets our minimum level for FUM
The BetaShares GGUS ETF had $111.72 million of money invested when we last pulled the monthly numbers. Given GGUS’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
What about management fees and costs?
BetaShares charges investors a yearly management fee of 0.80% for the GGUS ETF. This means that if you invested $2,000 in GGUS for a full year, you could expect to pay management fees of around $16.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our BetaShares GGUS report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
[ls_content_block id=”4954″ para=”paragraphs”]