In this article, we’ll try to explain why the Russell Investments High Dividend Australian Shares ETF (ASX: RDV) and Montaka Montaka Global Extension Fund (ASX: MKAX) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the RDV ETF
The Russell Investments RDV ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies. This ETF tracks this Russell Australia High Dividend Index.
According to our most recent data, the RDV ETF had $270.21 million of money invested. With RDV’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 RDV ETF? Grab our ETF free investment report.
The MKAX ETF – a quick look for savvy investors
The Montaka Global Extension fund is a listed managed fund which aims to offer investors exposure to long-term structural winning companies in attractive industries. Typically, the MKAX fund aims to hold 15 to 30 long positions in companies which are medium to large cap, together with 10-40 stock-specific short positions.
With our numbers for July 2021, MKAX’s FUM stood at $42.65 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 MKAX ETF bad?
Montaka, the ETF issuer, charges a yearly management fee of 1.25% for the MKAX ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $25.00.
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 Montaka MKAX 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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