The Australian ETF industry seems to be growing faster by the day, and one of the ETFs you might have your eye is the Betashares Australian Strong Bear (Hedge Fund) ETF (ASX: BBOZ). In this article, we’ll provide a quick review of the BBOZ ETF.
1. Exposure
The BetaShares BBOZ Fund is designed to provide protection from a declining Australian equity market. When the S&P/ASX 200 Accumulation Index falls, BBOZ aims to generate magnified returns for investors.
2. Funds under management (FUM)
The Betashares BBOZ ETF had $261.18 million of money invested when we last pulled the monthly numbers. Given BBOZ’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Management fees & costs matter
Betashares charges investors a yearly management fee of 1.38% for the BBOZ ETF. This means that if you invested $2,000 in BBOZ for a full year, you could expect to pay management fees of around $27.60.
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.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the BBOZ ETF. If you’re looking to do some further digging, be sure to read our Betashares BBOZ report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
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