What does the INES ETF do for a diversified portfolio?
The Intelligent Investor INES Fund is an actively managed ETF, with a focus on Environmental, Social and Governance (ESG) factors. The fund aims to achieve medium to long-term capital growth.
The Intelligent Investor INES Fund could be suitable for investors looking for an actively managed portfolio of Australian stocks, led by an in-house research team. This portfolio specifically focuses on ethically and socially responsible undervalued stocks.
How big is the InvestSMART INES ETF?
The InvestSMART INES ETF had $71.77 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 InvestSMART, 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.
INES ETF fees reviewed
InvestSMART charges investors a yearly management fee of 0.97% for the INES ETF. This means that if you invested $2,000 in INES for a full year, you could expect to pay management fees of around $19.40.
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.
Next steps
Even if you like what you see, before diving straight into buying the INES ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our InvestSMART INES report for a more comprehensive overview of this ETF. While you’re on our website, 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.