It’s time to run a ruler over BetaShares Australian Government Bond ETF (ASX: AGVT) and iShares Treasury ETF (ASX: IGB). The ETFs invest across the Fixed interest – Australia sector.
The BetaShares AGVT ETF (ASX:AGVT)
The BetaShares AGVT ETF provides investors with exposure to a portfolio of high-quality bonds issued by Australian federal and state governments, supranational banks and sovereign agencies.
According to our most recent data, the AGVT ETF had $177.95 million of money invested. With AGVT’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 Fixed interest – Australia 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 AGVT ETF, read our free ETF investment report once you’re done with this article.
iShares IGB ETF (ASX:IGB)
The iShares IGB ETF provides investors with diversified access to Australian government bonds with a broad range of maturities. This is a relatively low-cost way to get exposure to Australian Treasury bonds in a single fund.
With our numbers for July 2021, IGB’s FUM stood at $116.14 million. Since the IGB’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 IGB ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.18% for the IGB ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $3.60.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free IGB ETF report by clicking here.
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