In this article, we’ll try to explain why the VanEck Vectors Emerging Income Opportunities Active ETF (Managed Fund) ETF (ASX: EBND) and iShares Enhanced Cash ETF (ASX: ISEC) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the EBND ETF
The VanEck EBND ETF is an actively-managed ETF which provides investors with exposure to a portfolio of bonds and currencies from a range of emerging markets.
According to our most recent data, the EBND ETF had $134.34 million of money invested. With EBND’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 – International 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 EBND ETF? Grab our ETF free investment report.
The ISEC ETF – a quick look for savvy investors
The iShares ISEC ETF provides investors with exposure to higher-yielding, short-term money market instruments, including floating rate notes. ISEC seeks to outperform the S&P/ASX Bank Bill Index (before fees and expenses).
With our numbers for December 2021, ISEC’s FUM stood at $243.35 million. Since the ISEC’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the ISEC ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.12% for the ISEC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $2.40.
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 iShares ISEC 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.
