Don’t you wonder if now is the time to start analysing the Betashares Managed Risk Australian Share Fund (Managed Fund) ETF (ASX: AUST) and InvestSMART Intelligent Investor Australian Equity Income Fund (Managed Fund) ETF (ASX: INIF)? These Exchange-Traded Funds (ETFs) operate in the Australian shares sector, a key sector for diversified portfolios.
Is the AUST ETF a good investment? Here’s where you start…
The BetaShares AUST Fund is an actively managed fund that passively tracks the ASX 200, while providing investors with a risk managed approach that aims to minimise volatility and protect against losses in declining markets.
According to our most recent data, the AUST ETF had $21.7 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 AUST ETF review, available free when you click this link: access the free investment report.
A quick take of the INIF ETF
The Intelligent Investor INIF Fund is an actively managed ETF, with a focus on a research-led, value investing approach. This fund also focuses on providing investors with exposure to companies with a sustainable income yield.
With our numbers for July 2021, INIF’s FUM stood at $48.27 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 INIF ETF bad?
InvestSMART, the ETF issuer, charges a yearly management fee of 0.97% for the INIF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $19.40.
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 INIF by clicking here?
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