Don’t you wonder if now is the time to start analysing the iShares S&P Global Healthcare ETF (ASX: IXJ) and BetaShares Australian Small Companies Select Fund (Managed Fund) ETF (ASX: SMLL)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the IXJ ETF a good investment? Here’s where you start…
The iShares IXJ ETF provides investors with a targeted exposure to over 100 global healthcare companies. This includes companies in the pharmaceutical, biotechnology, and medical device space.
According to our most recent data, the IXJ ETF had $1022.03 million of money invested. With IXJ’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 International 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.
Get our team’s IXJ ETF review, available free when you click this link: access the free investment report.
A quick take of the SMLL ETF
The BetaShares SMLL Fund is an ASX-listed managed fund that aims to outperform the S&P/ASX Small Ordinaries Accumulation Index and provide investors with regular capital growth and income.
With our numbers for October 2021, SMLL’s FUM stood at $70.92 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the SMLL ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.39% for the SMLL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $7.80.
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 SMLL by clicking here?
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