How the RINC ETF could be used in portfolios
The BetaShares Legg Mason RINC ETF is an actively managed fund that invests in companies that own physical assets, like A-REITs, utilities and infrastructure. These companies are expected to grow revenues and profits overtime and provide sustainable dividend income to investors.
The aim of RINC is to provide investors with a more diversified exposure to listed real assets, than you get by only investing in the A-REIT Index. The fund also aims to produce a tax-effective income yield that exceeds the S&P/ASX 200 Index.
The RINC ETF is yet to reach our FUM target
The BetaShares RINC ETF had $64.29 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 BetaShares, 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.
RINC’s fees & costs explained
BetaShares charges investors a yearly management fee of 0.85% for the RINC ETF. This means that if you invested $2,000 in RINC for a full year, you could expect to pay management fees of around $17.00.
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.
Bottom line
This is just a quick overview of the RINC ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the RINC ETF’s Product Disclosure Statement (PDS), available on the BetaShares website, or speak to your financial adviser. For another handy resource, take a look at our BetaShares RINC report. You can also 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.
