It’s time to run a ruler over BetaShares Diversified Conservative Income ETF (ASX: DZZF) and iShares S&P/ASX Small Ordinaries ETF (ASX: ISO). The ETFs invest in the Diversified ETF and Australian shares sectors/industries, respectively.
The BetaShares DZZF ETF (ASX:DZZF)
The BetaShares DZZF ETF provides investors with a diversified portfolio of assets, including shares, property securities, bonds and cash, across Australian and global markets.
According to our most recent data, the DZZF ETF had $3.59 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the DZZF ETF, read our free ETF investment report once you’re done with this article.
iShares ISO ETF (ASX:ISO)
The iShares ISO ETF provides exposure to 200 small cap Australian shares. This is a low-cost way to access small Australian companies through a single fund.
With our numbers for Oct 2020, ISO’s FUM stood at $98.54 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
Are the fees for the ISO ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.55% for the ISO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free ISO ETF report by clicking here.
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