How an Aussie (or Kiwi!) investor can use the HVST ETF
With the goal of providing a franked income stream of at least 1.5x the yield of the broad Australian sharemarket on an annual basis, BetaShares HVST ETF aims to pay income to investors monthly. Please note that HVST does not aim to track an index.
According to our most recent data, the HVST ETF had $170.93 million of money invested. With HVST’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 Australian shares 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.
Fees to consider
According to our numbers, the annual management fee on the HVST ETF is .9%. The issuer, BetaShares, collects this fee automatically.
Meaning, if you invested $2,000 in the HVST ETF for a full year you could expect to pay management fees of around $18.00. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.5%, which is $10.00 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the HVST Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
You can get a copy of our free investment review when click here to see the HVST ETF report.
Key facts about the MOAT ETF
The VanEck MOAT ETF provides investors with exposure to a portfolio of carefully selected US companies which fit the criteria of having a sustainable competitive advantage, sometimes called a ‘moat’.
With our numbers for July 2022, MOAT’s FUM stood at $438.47 million. Since the MOAT’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 Multifactor sector should be able to scale well and become profitable for the ETF issuer.
A look at the MOAT ETF fee load?
VanEck, the ETF issuer, charges a yearly management fee of 0.49% for the MOAT ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $9.80.
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.
Get the full MOAT review available on our website by clicking this link to access our report.
So how can you actually invest the MOAT ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Mar 2024, with your free Pearler account you can buy the MOAT ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the MOAT ETF to take-up this offer. Sounds pretty good, right? To invest in MOAT for $0 brokerage, simply click here to visit Pearler’s website and sign up.
