Getting exposure to the Fixed interest – International sector has never been easier thanks to ASX ETFs like the BetaShares Sustainability leaders Diversified Bond ETF – Currency Hedged ETF (ASX: GBND). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the GBND ETF could be used in portfolios
The BetaShares GBND ETF provides investors with exposure to a portfolio of fixed-rate, investment-grade global and Australian bonds, with a significant allocation to “green bonds” which are issued to directly fund projects that have positive environmental and/or climate benefits.
GBND exceeds our minimum market cap (FUM) criteria
The BetaShares GBND ETF had $154.01 million of money invested when we last pulled the monthly numbers. Given GBND’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
GBND’s fees & costs explained
BetaShares charges investors a yearly management fee of 0.49% for the GBND ETF. This means that if you invested $2,000 in GBND for a full year, you could expect to pay management fees of around $9.80.
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.
Bottom line
This is just a quick overview of the GBND ETF. Before ‘testing the depth of water with both feet’ so to speak, be sure to read the GBND ETF’s Product Disclosure Statement (PDS), available on the BetaShares website, or speak to your financial adviser. For another handy resource, take a look at our BetaShares GBND report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
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