Don’t you wonder if now is the time to start analysing the iShares Treasury ETF (ASX: IGB) and BetaShares S&P/ASX 200 Resources Sector ETF (ASX: QRE)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and Australian shares sectors, respectively.
Is the IGB ETF a good investment? Here’s where you start…
The iShares IGB ETF provides investors with diversified access to Australian government bonds with a broad range of maturities. This is a relatively low-cost way to get exposure to Australian Treasury bonds in a single fund.
According to our most recent data, the IGB ETF had $144.49 million of money invested. With IGB’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.
Get our team’s IGB ETF review, available free when you click this link: access the free investment report.
A quick take of the QRE ETF
The BetaShares QRE ETF provides a targeted exposure to some of the largest companies in the Australian resources sector and aims to track the Solactive Australia Resources Sector Index.
With our numbers for December 2021, QRE’s FUM stood at $96.07 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
A look at the QRE ETF fee load?
BetaShares, the ETF issuer, charges a yearly management fee of 0.0034 for the QRE ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $6.80.
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.
Did you know: you can get our full ETF review of QRE by clicking here?
