On the ASX, the ETF Securities S&P/ASX 300 High Yield Plus ETF (ASX: ZYAU) and BetaShares Geared US Equity Fund Currency Hedged (Hedge Fund) ETF (ASX: GGUS) might be worth digging into in 2021.
What to know about the ETF Securities ZYAU ETF
The ETFS ZYAU ETF aims to track the S&P/ASX 300 Shareholder Yield Index, and invests in 40 stocks from within that index with the highest shareholder yields.
According to our most recent data, the ZYAU ETF had $103.76 million of money invested. With ZYAU’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 Australian 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 ZYAU ETF. Click here to access our free ETF review.
The BetaShares GGUS ETF – key points
The BetaShares GGUS Fund is an internally geared fund, investing in the largest 500 US-listed companies by market capitalisation.
With our numbers for December 2020, GGUS’s FUM stood at $57.5 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 Hedge fund sector ETFs, using our full list of ETFs.
Are the fees for the GGUS ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.80% for the GGUS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $16.00.
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.
Before rushing out and investing in the GGUS 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 GGUS.
[ls_content_block id=”4954″ para=”paragraphs”]
