Don’t you wonder if now is the time to start analysing the BetaShares Australian High Interest Cash ETF (ASX: AAA) and iShares S&P Europe ETF (ASX: IEU)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Cash – Australian and International shares sectors, respectively.
Is the AAA ETF a good investment? Here’s where you start…
The BetaShares AAA ETF provides investors with exposure to Australian cash, without the need to open a bank account or have capital locked up in a term deposit.
According to our most recent data, the AAA ETF had $2132.37 million of money invested. With AAA’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 Cash – Australian 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.
Get our team’s AAA ETF review, available free when you click this link: access the free investment report.
A quick take of the IEU ETF
The iShares IEU ETF provides investors with a broad exposure to leading European companies. This is a low-cost way to access a variety of European companies through a single fund.
With our numbers for July 2021, IEU’s FUM stood at $811.69 million. Since the IEU’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 IEU ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.60% for the IEU ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $12.00.
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.
Did you know: you can get our full ETF review of IEU by clicking here?
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