Like us, you might have noticed the Fidante Partners Limited ActiveX Ardea Real Outcome Bond Fund (Managed Fund) ETF (ASX: XARO) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the XARO ETF do for investors?
The ActiveX Ardea XARO Fund provides investors with exposure to an actively managed portfolio of fixed income products, particularly government bonds, while implementing risk management strategies that aim to provide protection from interest rate fluctuations and general market volatility.
2. Funds under management (FUM)
The Fidante Partners Limited XARO ETF had $767.29 million of money invested when we last pulled the monthly numbers. Given XARO’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Don’t forget about the fees & costs
Fidante Partners Limited charges investors a yearly management fee of 0.50% for the XARO ETF. This means that if you invested $2,000 in XARO for a full year, you could expect to pay management fees of around $10.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the XARO ETF. Before you go any further, take a look at our free Fidante Partners Limited XARO report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
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