Can the HBRD and MHG ETFs be part of an ASX ETF portfolio?

On the ASX, the BetaShares Active Australian Hybrids Fund (Managed Fund) ETF (ASX: HBRD) and Magellan Global Equities Fund Currency Hedged (Managed Fund) ETF (ASX: MHG) might be worth digging into in 2024.

What to know about the BetaShares HBRD ETF

The BetaShares HBRD Fund provides investors with exposure to hybrids. Think of hybrids this way: companies can raise capital by either issuing debt or equity. Debt and equity each have different characteristics, advantages and disadvantages. Hybrid securities have some characteristics of both.

According to our most recent data, the HBRD ETF had $1841.79 million of money invested. With HBRD’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 – Australia 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.

Keep learning about the HBRD ETF. Click here to access our free ETF review.

The Magellan MHG ETF – key points

The Magellan MHG Fund is an actively-managed portfolio that invests in a select array of international companies. The fund typically selects between 20-40 global equities and hedges its exposure against the Australian dollar to manage currency risks.

With our numbers for July 2022, MHG’s FUM stood at $163.76 million. Since the MHG’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 Active ETF (e.g. ETMF) sector should be able to scale well and become profitable for the ETF issuer.

A look at the MHG ETF fee load?

Magellan, the ETF issuer, charges a yearly management fee of 1.35% for the MHG ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $27.00.

The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.

Before rushing out and investing in the MHG fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on MHG.

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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.

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