On the ASX, the iShares S&P Asia 50 ETF (ASX: IAA) and Betashares FTSE RAFI Australia 200 ETF (ASX: QOZ) might be worth digging into in 2021.
What to know about the iShares IAA ETF
The iShares IAA ETF provides exposure to the performance of 50 large, established Asian companies listed on the stock exchanges of China, Hong Kong, South Korea, Singapore, Taiwan, and Macau.
According to our most recent data, the IAA ETF had $742.12 million of money invested. With IAA’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.
Keep learning about the IAA ETF. Click here to access our free ETF review.
The Betashares QOZ ETF – key points
The BetaShares QOZ ETF provides exposure to a ‘fundamentally weighted’ index of 200 large Australian shares. This ETF focuses on weighting the portfolio with a focus on ‘economic importance’ rather than market capitalisation, while also aiming to outperform traditional market-cap weighted indices.
With our numbers for Dec 2020, QOZ’s FUM stood at $318.2 million. Since the QOZ’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 QOZ ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.4% for the QOZ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.00.
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.
Before rushing out and investing in the QOZ 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 QOZ.
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