What’s up with the BetaShares India Quality ETF (ASX:IIND)?

If you’re looking for an ASX ETF in the International shares sector, chances are, the BetaShares India Quality ETF (ASX: IIND) is an ETF you’re considering. Here’s what you need to know.

How ASX investors can use the IIND ETF

For investors looking for exposure to the Indian market, IIND is one of the only Australian ETFs that provides this exposure. IIND invests in 30 of the leading Indian companies, based on a quality approach, rather than market capitalisation.
IIND could be used by investors to gain access to the Indian market, one of the fastest growing world economies. Investors can use ETFs to diversify their portfolios into international markets, as Australian investors are generally biased towards their own market.

The IIND ETF is yet to reach scale

The BetaShares IIND ETF had $68.63 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 BetaShares, 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.

IIND ETF fees explained

BetaShares charges investors a yearly management fee of 0.80% for the IIND ETF. This means that if you invested $2,000 in IIND for a full year, you could expect to pay management fees of around $16.00.

For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.

Putting it all together

If you’re weighing up investing in IIND, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free BetaShares IIND report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.

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