Don’t you wonder if now is the time to start analysing the BetaShares Legg Mason Real Income Fund (Managed Fund) ETF (ASX: RINC) and BetaShares BetaShares Global Sustainability Leaders ETF – CH (ASX: HETH)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the RINC ETF a good investment? Here’s where you start…
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.
According to our most recent data, the RINC ETF had $54.64 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Get our team’s RINC ETF review, available free when you click this link: access the free investment report.
A quick take of the HETH ETF
The BetaShares HETH ETF provides investors with a currency-hedged exposure to a diversified portfolio of global companies that fit within the environmental, social and governance (ESG) framework set, along with screening out companies with significant exposure to fossil fuels. HETH has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program. The HETH ETF invests in teh BetaShares ETHI ETF.
With our numbers for July 2021, HETH’s FUM stood at $127.91 million. Since the HETH’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 Ethical sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the HETH ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.62% for the HETH ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $12.40.
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.
Did you know: you can get our full ETF review of HETH by clicking here?
[ls_content_block id=”4954″ para=”paragraphs”]
