If you’re on the hunt for exposure to the Australian shares sector, it could be worth adding the InvestSMART Intelligent Investor Ethical Share Fund (Managed Fund) ETF (ASX: INES) to your ASX watchlist. Let’s take a closer look at this InvestSMART ETF.
What is the INES ETF used for?
The Intelligent Investor INES Fund is an actively managed ETF, with a focus on Environmental, Social and Governance (ESG) factors. The fund aims to achieve medium to long-term capital growth.
The Intelligent Investor INES Fund could be suitable for investors looking for an actively managed portfolio of Australian stocks, led by an in-house research team. This portfolio specifically focuses on ethically and socially responsible undervalued stocks.
Keep an eye on FUM
The InvestSMART INES ETF had $65.19 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as InvestSMART, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
Fees and costs for investors
InvestSMART charges investors a yearly management fee of 0.97% for the INES ETF. This means that if you invested $2,000 in INES for a full year, you could expect to pay management fees of around $19.40.
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.
These are just some of the considerations or factors you would need to look at when weighing up the INES ETF. Before doing anything, take a look at our InvestSMART INES report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.