Australian and ASX-listed ETFs like the ETF Securities LNAS ETF (ASX: LNAS) are gaining more attention than ever because of how easy they make it for investors to get exposure to the International shares sector. Here’s a quick review of the LNAS ETF.
What does the LNAS ETF do for a diversified portfolio?
The ETF Securities Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS) ETF is an ETF designed to provide amplified or ‘geared’ exposure to the popular NASDAQ 100 stock market index.
The LNAS ETF could be used by investors who are seeking to add gearing to their portfolio and are willing to accept the higher risks associated with that. There are particular risks associated with geared ETFs that your financial adviser can (and should) explain to you before investing.
How big is the ETF Securities LNAS ETF?
The ETF Securities LNAS ETF had $22.11 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as ETF Securities, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
LNAS ETF fees reviewed
ETF Securities charges investors a yearly management fee of 1.00% for the LNAS ETF. This means that if you invested $2,000 in LNAS for a full year, you could expect to pay management fees of around $20.00.
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.
Next steps
Even if you like what you see, before diving straight into buying the LNAS ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our ETF Securities LNAS report for a more comprehensive overview of this ETF. While you’re on our website, 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.
So how can you actually invest in the LNAS ETF? In the month of May 2022, you can buy the LNAS ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy LNAS for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
