If you’re considering getting exposure to the Australian shares sector, the Russell Investments Australian Responsible Investment ETF (ASX: RARI) might be one ASX ETF to watch in October.
How the RARI ETF fits into an ASX portfolio
The Russell Investments RARI ETF invests in companies that demonstrate positive environmental, social and governance (ESG) characteristics. RARI also negatively screens out companies that have significant involvement in activities that are deemed inconsistent with responsible investment considerations.
RARI meets our minimum level for FUM
The Russell Investments RARI ETF had $208.85 million of money invested when we last pulled the monthly numbers. Given RARI’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 Australian 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?
Russell Investments charges investors a yearly management fee of 0.45% for the RARI ETF. This means that if you invested $2,000 in RARI for a full year, you could expect to pay management fees of around $9.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 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 Russell Investments RARI report – 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.
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