The Australian ETF industry seems to be growing faster by the day, and one of the ETFs you might have your eye is the BetaShares Sustainability leaders Diversified Bond ETF – Currency Hedged ETF (ASX: GBND). In this article, we’ll provide a quick review of the GBND ETF.
1. Exposure
The BetaShares GBND ETF provides investors with exposure to a portfolio of fixed-rate, investment-grade global and Australian bonds, with a significant allocation to “green bonds” which are issued to directly fund projects that have positive environmental and/or climate benefits.
2. Funds under management (FUM)
The BetaShares GBND ETF had $106.39 million of money invested when we last pulled the monthly numbers. Given GBND’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Management fees & costs matter
BetaShares charges investors a yearly management fee of 0.49% for the GBND ETF. This means that if you invested $2,000 in GBND for a full year, you could expect to pay management fees of around $9.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the GBND ETF. If you’re looking to do some further digging, be sure to read our BetaShares GBND report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
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