EBND and IGB: 2 ASX ETFs to follow

In this article, we’ll try to explain why the VanEck Vectors Emerging Income Opportunities Active ETF (Managed Fund) ETF (ASX: EBND) and iShares Treasury ETF (ASX: IGB) are two ASX ETFs worth taking a look at in FY21.

Some things you should know about the EBND ETF

The VanEck EBND ETF is an actively-managed ETF which provides investors with exposure to a portfolio of bonds and currencies from a range of emerging markets.

According to our most recent data, the EBND ETF had $118.24 million of money invested. With EBND’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Fixed interest – International sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.

Like the look of the EBND ETF? Grab our ETF free investment report.

The IGB ETF – a quick look for savvy investors

The iShares IGB ETF provides investors with diversified access to Australian government bonds with a broad range of maturities. This is a relatively low-cost way to get exposure to Australian Treasury bonds in a single fund.

With our numbers for July 2022, IGB’s FUM stood at $329.34 million. Since the IGB’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.

A look at the IGB ETF fee load?

iShares, the ETF issuer, charges a yearly management fee of 0.18% for the IGB ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $3.60.

This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.

The iShares IGB ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.

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Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

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