In this article, we’ll try to explain why the Betashares Australian Sustainability Leaders ETF (ASX: FAIR) and iShares Edge MSCI Australia Minimum Volatility ETF (ASX: MVOL) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the FAIR ETF
The BetaShares FAIR ETF provides exposure to the largest Australian shares and focuses on companies which operate ethically. FAIR has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
According to our most recent data, the FAIR ETF had $1089.53 million of money invested. With FAIR’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 Australian 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 FAIR ETF? Grab our ETF free investment report.
The MVOL ETF – a quick look for savvy investors
The iShares MVOL ETF invests in Australian companies, with a focus on minimising volatility and risk within the portfolio. This is a low-cost way to access top Australian companies through a single fund.
With our numbers for July 2021, MVOL’s FUM stood at $29.69 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 MVOL ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.30% for the MVOL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.00.
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.
The iShares MVOL 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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