How the ETHI ETF fits into an ASX portfolio
The BetaShares ETHI ETF provides investors with exposure to a diversified portfolio of global companies that fit within the environmental, social and governance (ESG) framework set, along with screening out companies with significant exposure to fossil fuels. ETHI has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
The ETHI ETF could be a solution for investors looking for exposure to a portfolio of sustainable and ethical companies, specifically excluding fossil fuel producers, companies with human rights issues and companies with a lack of gender diversity within the board.
ETHI meets our minimum level for FUM
The BetaShares ETHI ETF had $2057.39 million of money invested when we last pulled the monthly numbers. Given ETHI’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
BetaShares charges investors a yearly management fee of 0.59% for the ETHI ETF. This means that if you invested $2,000 in ETHI for a full year, you could expect to pay management fees of around $11.80.
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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our BetaShares ETHI report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.