XARO and DGGF: 2 ASX ETFs to follow

In this article, we’ll try to explain why the Fidante Partners Limited ActiveX Ardea Real Outcome Bond Fund (Managed Fund) ETF (ASX: XARO) and BetaShares Ethical Diversified Growth ETF (ASX: DGGF) are two ASX ETFs worth taking a look at in FY21.

Some things you should know about the XARO ETF

The ActiveX Ardea XARO Fund provides investors with exposure to an actively managed portfolio of fixed income products, particularly government bonds, while implementing risk management strategies that aim to provide protection from interest rate fluctuations and general market volatility.

According to our most recent data, the XARO ETF had $857.74 million of money invested. With XARO’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 XARO ETF? Grab our ETF free investment report.

The DGGF ETF – a quick look for savvy investors

The BetaShares DGGF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.

With our numbers for July 2022, DGGF’s FUM stood at $23.7 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Ethical sector ETFs, using our full list of ETFs.

A look at the DGGF ETF fee load?

BetaShares, the ETF issuer, charges a yearly management fee of 0.39% for the DGGF ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $7.80.

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 BetaShares DGGF 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.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

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.

You can INSTANTLY access Owen’s report, and 24/7 access to the Rask community, for FREE by CLICKING HERE NOW or the button below.

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