Don’t you wonder if now is the time to start analysing the BetaShares Australian Government Bond ETF (ASX: AGVT) and BetaShares Geared US Equity Fund Currency Hedged (Hedge Fund) ETF (ASX: GGUS)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and International shares sectors, respectively.
Is the AGVT ETF a good investment? Here’s where you start…
The BetaShares AGVT ETF provides investors with exposure to a portfolio of high-quality bonds issued by Australian federal and state governments, supranational banks and sovereign agencies.
According to our most recent data, the AGVT ETF had $197.15 million of money invested. With AGVT’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 – Australia 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 AGVT ETF review, available free when you click this link: access the free investment report.
A quick take of the GGUS ETF
The BetaShares GGUS Fund is an internally geared fund, investing in the largest 500 US-listed companies by market capitalisation.
With our numbers for October 2021, GGUS’s FUM stood at $111.72 million. Since the GGUS’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 Hedge fund sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the GGUS ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.80% for the GGUS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $16.00.
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.
Did you know: you can get our full ETF review of GGUS by clicking here?