In this article, we’ll try to explain why the Betashares Australian Strong Bear (Hedge Fund) ETF (ASX: BBOZ) and BetaShares Europe ETF – Currency Hedged ETF (ASX: HEUR) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the BBOZ ETF
The BetaShares BBOZ Fund is designed to provide protection from a declining Australian equity market. When the S&P/ASX 200 Accumulation Index falls, BBOZ aims to generate magnified returns for investors.
According to our most recent data, the BBOZ ETF had $287.03 million of money invested. With BBOZ’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 Australian 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.
Like the look of the BBOZ ETF? Grab our ETF free investment report.
The HEUR ETF – a quick look for savvy investors
The BetaShares HEUR ETF provides investors with exposure to the largest companies from within the Eurozone, while also generating a large portion of their revenues outside the Eurozone.
With our numbers for October 2021, HEUR’s FUM stood at $50.12 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 HEUR ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.56% for the HEUR ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.20.
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.
The BetaShares HEUR ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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