Don’t you wonder if now is the time to start analysing the Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND) and BetaShares Australian High Interest Cash ETF (ASX: AAA)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – International and Cash – Australian sectors, respectively.
Is the VBND ETF a good investment? Here’s where you start…
The Vanguard VBND ETF provides investors with exposure to government debt and investment-grade corporate debt from developed markets around the world.
According to our most recent data, the VBND ETF had $447.97 million of money invested. With VBND’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 Fixed interest – International 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 VBND ETF review, available free when you click this link: access the free investment report.
A quick take of the AAA ETF
The BetaShares AAA ETF provides investors with exposure to Australian cash, without the need to open a bank account or have capital locked up in a term deposit.
With our numbers for July 2021, AAA’s FUM stood at $2865.43 million. Since the AAA’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 AAA ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.18% for the AAA ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $3.60.
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 AAA by clicking here?