On the ASX, the ETF Securities Morningstar Global Technology ETF (ASX: TECH) and BetaShares Strong Australian Dollar Fund (Hedge Fund) ETF (ASX: AUDS) might be worth digging into in 2021.
What to know about the ETF Securities TECH ETF
The ETFS TECH ETF provides investors with exposure to the performance of shares in around 30 undervalued competitively-advantaged global technology businesses. Think global social media companies, online or cloud-based platforms, leaders in artificial intelligence, software creators and digital advertisers.
According to our most recent data, the TECH ETF had $244.53 million of money invested. With TECH’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 TECH ETF. Click here to access our free ETF review.
The BetaShares AUDS ETF – key points
The BetaShares AUDS Fund provides investors with geared exposure to the change in value of the Australian dollar, relative to the US dollar.
With our numbers for December 2020, AUDS’s FUM stood at $12.6 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 AUDS ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 1.38% for the AUDS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $27.60.
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 AUDS 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 AUDS.
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