In this article, we’ll try to explain why the BetaShares Australian Government Bond ETF (ASX: AGVT) and iShares MSCI Emerging Markets ETF (ASX: IEM) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the AGVT ETF
The BetaShares AGVT ETF provides investors with exposure to a portfolio of high-quality bonds issued by Australian federal and state governments, supranational banks and sovereign agencies.
According to our most recent data, the AGVT ETF had $199.79 million of money invested. With AGVT’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 – Australia 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 AGVT ETF? Grab our ETF free investment report.
The IEM ETF – a quick look for savvy investors
The iShares IEM ETF provides investors with exposure to a portfolio of over 800 companies from emerging markets, like China, India and Brazil.
With our numbers for December 2021, IEM’s FUM stood at $950.23 million. Since the IEM’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 IEM ETF fee load?
iShares, the ETF issuer, charges a yearly management fee of 0.0069 for the IEM ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $13.80.
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.
The iShares IEM 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.
