Find out what the ETF does
The ETFS ZYAU ETF aims to track the S&P/ASX 300 Shareholder Yield Index, and invests in 40 stocks from within that index with the highest shareholder yields.
The ZYAU ETF could be used by investors looking for a diversified portfolio of Australian companies, that have a track record of paying regular tax-effective dividends to their shareholders.
ZYAU’s FUM does not meet our minimum hurdle
The ETF Securities ZYAU ETF had $95.62 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.
Pay attention to yearly costs & fees
ETF Securities charges investors a yearly management fee of 0.35% for the ZYAU ETF. This means that if you invested $2,000 in ZYAU for a full year, you could expect to pay management fees of around $7.00.
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.
Our takeaway
If you’re thinking about investing in ZYAU, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free ETF Securities ZYAU report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Australian shares sector to do a good comparison.
So how can you actually invest in the ZYAU ETF? In the month of August 2022, you can buy the ZYAU 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 ZYAU for free click here to go to Pearler and sign up (hint: it’s also free to get an account).