It’s time to run a ruler over iShares Enhanced Cash ETF (ASX: ISEC) and BetaShares U.S Dollar ETF (ASX: USD). The ETFs invest in the Cash – Australian and US dollar sectors/industries, respectively.
The iShares ISEC ETF (ASX:ISEC)
The iShares ISEC ETF provides investors with exposure to higher-yielding, short-term money market instruments, including floating rate notes. ISEC seeks to outperform the S&P/ASX Bank Bill Index (before fees and expenses).
According to our most recent data, the ISEC ETF had $204.17 million of money invested. With ISEC’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 Cash – Australian 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.
To learn more about the ISEC ETF, read our free ETF investment report once you’re done with this article.
BetaShares USD ETF (ASX:USD)
The BetaShares USD ETF provides investors with exposure to the performance of the US dollar, relative to the Australian dollar.
With our numbers for December 2020, USD’s FUM stood at $149.3 million. Since the USD’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 USD ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.45% for the USD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free USD ETF report by clicking here.
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