1. Exposure
The ActiveX Ardea XARO Fund provides investors with exposure to an actively managed portfolio of fixed income products, particularly government bonds, while implementing risk management strategies that aim to provide protection from interest rate fluctuations and general market volatility.
Investors could use the XARO Fund to diversify an existing portfolio and gain exposure to fixed income, or to create a regular income stream from the quarterly distributions offered by this ETF.
2. Funds under management (FUM)
The Fidante Partners Limited XARO ETF had $857.74 million of money invested when we last pulled the monthly numbers. Given XARO’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 – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Management fees & costs matter
Fidante Partners Limited charges investors a yearly management fee of 0.50% for the XARO ETF. This means that if you invested $2,000 in XARO for a full year, you could expect to pay management fees of around $10.00.
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.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the XARO ETF. If you’re looking to do some further digging, be sure to read our Fidante Partners Limited XARO report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
