1. What does the BNDS ETF do for investors?
The BetaShares Legg Mason BNDS Fund is an actively managed fund that aims to deliver income and maximise the investment opportunities from Australian fixed income markets.
Investors could use the BNDS Fund to diversify an existing portfolio and gain exposure to Australian bonds, or to create a regular income stream from the monthly distributions offered by this ETF.
2. Funds under management (FUM)
The BetaShares BNDS ETF had $215.45 million of money invested when we last pulled the monthly numbers. Given BNDS’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 – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Don’t forget about the fees & costs
BetaShares charges investors a yearly management fee of 0.42% for the BNDS ETF. This means that if you invested $2,000 in BNDS for a full year, you could expect to pay management fees of around $8.40.
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.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the BNDS ETF. Before you go any further, take a look at our free BetaShares BNDS report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
