On the ASX, the Antipodes Partners Global Shares (Quoted Managed Fund) ETF (ASX: AGX1) and iShares Core Global Corporate Bond (AUD Hedged) ETF (ASX: IHCB) might be worth digging into in 2021.
What to know about the Antipodes Partners AGX1 ETF
The Antipodes AGX1 is an actively managed portfolio of global equities, which focuses on building a concentrated fund of undervalued companies.
According to our most recent data, the AGX1 ETF had $27.58 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Keep learning about the AGX1 ETF. Click here to access our free ETF review.
The iShares IHCB ETF – key points
The iShares IHCB ETF provides investors with access to the performance of investment-grade corporate bonds across global markets and sectors, hedged into Australian dollars. This is a relatively low-cost way to get exposure to global investment-grade corporate bonds in a single fund.
With our numbers for December 2020, IHCB’s FUM stood at $319.11 million. Since the IHCB’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 IHCB ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.26% for the IHCB ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.20.
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 IHCB 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 IHCB.
[ls_content_block id=”4954″ para=”paragraphs”]
