Is 2022 going to be the year to invest in ASX ETFs like the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) and BetaShares Australia Top 20 Equity Yield Max Fund (Managed Fund) ETF (ASX: YMAX)?
How an Aussie (or Kiwi!) investor can use the RBTZ ETF
The BetaShares RBTZ ETF provides investors with exposure to leading global companies involved in the production and utilisation of robotics and artificial intelligence – a rising global trend.
According to our most recent data, the RBTZ ETF had $222.47 million of money invested. With RBTZ’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 International shares 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.
Fees to consider
According to our numbers, the annual management fee on the RBTZ ETF is 0.0057. The issuer, BetaShares, collects this fee automatically.
Meaning, if you invested $2,000 in the RBTZ ETF for a full year you could expect to pay management fees of around $11.40. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.51%, which is $10.20 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the RBTZ Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
You can get a copy of our free investment review when click here to see the RBTZ ETF report.
Key facts about the YMAX ETF
The BetaShares YMAX ETF is an actively managed portfolio of Australia’s top 20 blue-chip companies, designed to maximise income by using covered calls.
With our numbers for December 2021, YMAX’s FUM stood at $335.68 million. Since the YMAX’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 Yield/income sector should be able to scale well and become profitable for the ETF issuer.
A look at the YMAX ETF fee load?
BetaShares, the ETF issuer, charges a yearly management fee of 0.0076 for the YMAX ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $15.20.
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.
Get the full YMAX review available on our website by clicking this link to access our report.
