In this article, we’ll try to explain why the ETF Securities ROBO Global Robotics and Automation ETF (ASX: ROBO) and BetaShares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the ROBO ETF
The ETFS ROBO ETF provides investors with exposure to the global value chain of robotics, automation and artificial intelligence (RAAI) related companies. Some investors consider RAAI-related companies as disruptors to industries across the globe and thus, a ‘thematic’ or ‘megatrend’ to invest in.
According to our most recent data, the ROBO ETF had $185.3 million of money invested. With ROBO’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.
Like the look of the ROBO ETF? Grab our ETF free investment report.
The HNDQ ETF – a quick look for savvy investors
The BetaShares Nasdaq 100 ETF invests in 100 of the largest non-financial companies listed on the NASDAQ stock exchange (i.e. the USA). This is the currency hedge version of the BetaShares NASDAQ 100 ETF (ASX: NDQ).
With our numbers for December 2020, HNDQ’s FUM stood at $50.61 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the HNDQ ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.51% for the HNDQ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $10.20.
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.
The BetaShares HNDQ ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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