Getting exposure to the Australian shares sector has never been easier thanks to ASX ETFs like the BetaShares Australian Sustainability Leaders ETF (ASX: FAIR). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the FAIR ETF could be used in portfolios
The BetaShares FAIR ETF provides exposure to the largest Australian shares and focuses on companies which operate ethically. FAIR has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
The BetaShares FAIR ETF could be used by investors to get exposure to a narrow (less than 100) basket of Australia’s largest public companies, that meet certain sustainability and ethical standards. These companies are likely to grow their profit over time and pay regular tax-effective dividends to their shareholders.
FAIR exceeds our minimum market cap (FUM) criteria
The BetaShares FAIR ETF had $1346.15 million of money invested when we last pulled the monthly numbers. Given FAIR’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.
FAIR’s fees & costs explained
BetaShares charges investors a yearly management fee of 0.49% for the FAIR ETF. This means that if you invested $2,000 in FAIR for a full year, you could expect to pay management fees of around $9.80.
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.
Bottom line
This is just a quick overview of the FAIR ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the FAIR ETF’s Product Disclosure Statement (PDS), available on the BetaShares website, or speak to your financial adviser. For another handy resource, take a look at our BetaShares FAIR report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
