What the BetaShares YMAX ETF actually does
The BetaShares YMAX ETF is an actively managed portfolio of Australia’s top 20 blue-chip companies, designed to maximise income by using covered calls.
YMAX could be used by investors who are primarily focused on income from Australia’s top 20 blue-chip companies. The fund generates higher levels of income by selling call options on up to 100% of the portfolio holdings. Please note that YMAX does not track an index.
YMAX meets our minimum FUM criteria
The BetaShares YMAX ETF had $345.38 million of money invested when we last pulled the monthly numbers. Given YMAX’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget YMAX’s fees
BetaShares charges investors a yearly management fee of 0.76% for the YMAX ETF. This means that if you invested $2,000 in YMAX for a full year, you could expect to pay management fees of around $15.20.
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 to do next
If you’re weighing up investing in the YMAX ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free BetaShares YMAX report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
