Could now be your opportunity to place the ETF Securities ROBO Global Robotics and Automation ETF (ASX: ROBO) and the BetaShares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ) on your ASX investing watchlist?
Why do investors own the ETF Securities ROBO Global Robotics and Automation ETF?
The ETFS ROBO ETF provides investors with exposure to the global value chain of robotics, automation and artificial intelligence (RAAI) related companies. Some investors consider RAAI-related companies as disruptors to industries across the globe and thus, a ‘thematic’ or ‘megatrend’ to invest in.
According to our most recent data, the ROBO ETF had $237.28 million of money invested. With ROBO’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.
Fees to consider
According to our numbers, the annual management fee on the ROBO ETF is 0.69%. The issuer, ETF Securities, collects this fee automatically.
Meaning, if you invested $2,000 in the ROBO ETF for a full year you could expect to pay management fees of around $13.80. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.51%, which is $10.20 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the ROBO Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
Don’t stop here, to get our full ROBO ETF review, click through to this ETF review page now.
BetaShares Nasdaq 100 ETF – Currency Hedged
The BetaShares Nasdaq 100 ETF invests in 100 of the largest non-financial companies listed on the NASDAQ stock exchange (i.e. the USA). This is the currency hedge version of the BetaShares NASDAQ 100 ETF (ASX: NDQ).
With our numbers for July 2021, HNDQ’s FUM stood at $102.46 million. Since the HNDQ’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the HNDQ ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.51% for the HNDQ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $10.20.
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.
To discover more facts about the HNDQ ETF, read our free ETF investment report.
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