In this article, we’ll try to explain why the Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND) and iShares Core Cash ETF (ASX: BILL) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the VBND ETF
The Vanguard VBND ETF provides investors with exposure to government debt and investment-grade corporate debt from developed markets around the world.
According to our most recent data, the VBND ETF had $460.26 million of money invested. With VBND’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 VBND ETF? Grab our ETF free investment report.
The BILL ETF – a quick look for savvy investors
The iShares BILL ETF provides investors with exposure to short-term Australian dollar-denominated bank bills with term to maturities of up to three months.
With our numbers for December 2021, BILL’s FUM stood at $338.98 million. Since the BILL’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.
A look at the BILL ETF fee load?
iShares, the ETF issuer, charges a yearly management fee of 0.0007 for the BILL ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $1.40.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
The iShares BILL 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.
