How the UMAX ETF fits into an ASX portfolio
The BetaShares UMAX ETF is an actively managed portfolio that provides investors with exposure to US equities, with a focus on enhancing the ETFs dividend yield using a âcovered callâ strategy.
UMAX could be a solution for investors looking for exposure to the top 500 US companies, and is designed to maximise income by using covered calls. This strategy also partially reduces downside risk in falling markets.
UMAX meets our minimum level for FUM
The BetaShares UMAX ETF had $125.8 million of money invested when we last pulled the monthly numbers. Given UMAX’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 0.79% for the UMAX ETF. This means that if you invested $2,000 in UMAX for a full year, you could expect to pay management fees of around $15.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% 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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our BetaShares UMAX report â 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.
