If you’re looking for an ASX ETF in the Fixed interest – Australia sector, chances are, the BetaShares Active Australian Hybrids Fund (Managed Fund) ETF (ASX: HBRD) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the HBRD ETF
The BetaShares HBRD Fund provides investors with exposure to hybrids. Think of hybrids this way: companies can raise capital by either issuing debt or equity. Debt and equity each have different characteristics, advantages and disadvantages. Hybrid securities have some characteristics of both.
(ASX: HBRD)
HBRD meets our minimum market cap (FUM) criteria
The BetaShares HBRD ETF had $1478.23 million of money invested when we last pulled the monthly numbers. Given HBRD’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 – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
HBRD ETF fees explained
BetaShares charges investors a yearly management fee of 0.55% for the HBRD ETF. This means that if you invested $2,000 in HBRD for a full year, you could expect to pay management fees of around $11.00.
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.
Putting it all together
If you’re weighing up investing in HBRD, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free BetaShares HBRD report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Fixed interest – Australia sector to compare your options.
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