In this article, we’ll try to explain why the iShares S&P 500 AUD Hedged ETF (ASX: IHVV) and BetaShares Legg Mason Real Income Fund (Managed Fund) ETF (ASX: RINC) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the IHVV ETF
The iShares IHVV ETF provides investors with exposure to the largest 500 US companies. This is a low-cost way to access leading US companies through a single fund.
According to our most recent data, the IHVV ETF had $569.6 million of money invested. With IHVV’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 IHVV ETF? Grab our ETF free investment report.
The RINC ETF – a quick look for savvy investors
The BetaShares Legg Mason RINC ETF is an actively managed fund that invests in companies that own physical assets, like A-REITs, utilities and infrastructure. These companies are expected to grow revenues and profits overtime and provide sustainable dividend income to investors.
With our numbers for July 2021, RINC’s FUM stood at $54.64 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the RINC ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.85% for the RINC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $17.00.
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 BetaShares RINC 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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