On the ASX, the iShares Global High Yield Bond (AUD Hedged) ETF (ASX: IHHY) and VanEck Vectors FTSE International Property (Hedged) ETF (ASX: REIT) might be worth digging into in 2021.
What to know about the iShares IHHY ETF
The iShares IHHY ETF provides investors with exposure to the performance of high-yield corporate bonds across global markets and sectors, hedged into Australian dollars. This is a simple way to get exposure to high-yield corporate bonds across global developed markets in a single fund.
According to our most recent data, the IHHY ETF had $121.02 million of money invested. With IHHY’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 – International 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.
Keep learning about the IHHY ETF. Click here to access our free ETF review.
The VanEck REIT ETF – key points
The VanEck Vectors FTSE International Property (Hedged) ETF gives investors exposure to developed international property markets outside of Australia.
With our numbers for July 2021, REIT’s FUM stood at $100.41 million. Since the REIT’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 Property sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the REIT ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.43% for the REIT ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.60.
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.
Before rushing out and investing in the REIT fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on REIT.
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