How the DGGF ETF could be used in portfolios
The BetaShares DGGF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.
DGGF could be used by investors looking for a diversified ETF that provides ethical exposure to a range of asset classes. This ETF has a growth risk profile, which means that 30% of the portfolio is made up of defensive assets (bonds and cash) and the other 70% is made up from growth assets (Australian and international shares).
The DGGF ETF is yet to reach our FUM target
The BetaShares DGGF ETF had $23.7 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.
DGGF’s fees & costs explained
BetaShares charges investors a yearly management fee of 0.39% for the DGGF ETF. This means that if you invested $2,000 in DGGF for a full year, you could expect to pay management fees of around $7.80.
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 DGGF ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the DGGF 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 DGGF 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.
