On the ASX, the BetaShares Global Banks ETF – Currency Hedged ETF (ASX: BNKS) and VanEck Vectors ChinaAMC A-Share ETF (ASX: CETF) might be worth digging into in 2021.
What to know about the BetaShares BNKS ETF
If you’re looking for an ETF made up entirely of global banks (ex-Australia), then BNKS provides a solution. This ETF tracks the Nasdaq Global ex-Australia Banks Hedged AUD Index.
According to our most recent data, the BNKS ETF had $110.04 million of money invested. With BNKS’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 International 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 BNKS ETF. Click here to access our free ETF review.
The VanEck CETF ETF – key points
The VanEck CETF ETF gives investors exposure to 50 of the largest companies in the mainland Chinese market.
With our numbers for July 2021, CETF’s FUM stood at $22.52 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 CETF ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.60% for the CETF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $12.00.
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 CETF 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 CETF.
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