Australian and ASX-listed ETFs like the BetaShares BNDS ETF (ASX: BNDS) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Fixed interest – Australia sector. Here’s a quick review of the BNDS ETF.
What does the BNDS ETF do for a diversified portfolio?
The BetaShares Legg Mason BNDS Fund is an actively managed fund that aims to deliver income and maximise the investment opportunities from Australian fixed income markets.
Investors could use the BNDS Fund to diversify an existing portfolio and gain exposure to Australian bonds, or to create a regular income stream from the monthly distributions offered by this ETF.
How big is the BetaShares BNDS ETF?
The BetaShares BNDS ETF had $195.93 million of money invested when we last pulled the monthly numbers. Given BNDS’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 Fixed interest – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
BNDS ETF fees reviewed
BetaShares charges investors a yearly management fee of 0.42% for the BNDS ETF. This means that if you invested $2,000 in BNDS for a full year, you could expect to pay management fees of around $8.40.
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 BNDS ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our BetaShares BNDS 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.