Find out what the ETF does
The BetaShares GBND ETF provides investors with exposure to a portfolio of fixed-rate, investment-grade global and Australian bonds, with a significant allocation to “green bonds” which are issued to directly fund projects that have positive environmental and/or climate benefits.
Investors could use the GBND ETF to diversify an existing portfolio and gain exposure to Australian bonds that meet responsible investment criteria, or to create a regular income stream from the quarterly distributions offered by this ETF.
GBND’s FUM meets our hurdle
The BetaShares GBND ETF had $179.78 million of money invested when we last pulled the monthly numbers. Given GBND’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Pay attention to yearly costs & fees
BetaShares charges investors a yearly management fee of 0.49% for the GBND ETF. This means that if you invested $2,000 in GBND for a full year, you could expect to pay management fees of around $9.80.
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.
Our takeaway
If you’re thinking about investing in GBND, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free BetaShares GBND report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Fixed interest – International sector to do a good comparison.