It’s time to run a ruler over SPDR Dow Jones Global Select Real Estate Fund ETF (ASX: DJRE) and iShares Enhanced Cash ETF (ASX: ISEC). The ETFs invest in the International shares and Cash – Australian sectors/industries, respectively.
The SPDR DJRE ETF (ASX:DJRE)
The DJRE ETF by SPDR invests in global shares/securities of listed real estate investment trusts (REITs). Investors can use these property-focused ETFs to get global exposure to a broad basket of trusts and companies exposed to property, including office spaces, commercial rental spaces and construction projects.
According to our most recent data, the DJRE ETF had $297.72 million of money invested. With DJRE’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 International 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.
To learn more about the DJRE ETF, read our free ETF investment report once you’re done with this article.
iShares ISEC ETF (ASX:ISEC)
The iShares ISEC ETF provides investors with exposure to higher-yielding, short-term money market instruments, including floating rate notes. ISEC seeks to outperform the S&P/ASX Bank Bill Index (before fees and expenses).
With our numbers for Oct 2020, ISEC’s FUM stood at $193.58 million. Since the ISEC’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the ISEC ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.12% for the ISEC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $2.40.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free ISEC ETF report by clicking here.
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