If you’re looking for an ASX ETF in the Australian shares sector, chances are, the SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the SYI ETF
The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
This ETF could be used by investors looking for a diversified portfolio of Australian companies that have a track record of paying regular, tax-effective dividends to their shareholders.
SYI meets our minimum market cap (FUM) criteria
The SPDR SYI ETF had $257.1 million of money invested when we last pulled the monthly numbers. Given SYI’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
SYI ETF fees explained
SPDR charges investors a yearly management fee of 0.35% for the SYI ETF. This means that if you invested $2,000 in SYI for a full year, you could expect to pay management fees of around $7.00.
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.
Putting it all together
If you’re weighing up investing in SYI, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free SPDR SYI report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
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