In this article, we’ll try to explain why the Betashares Australia 200 ETF (ASX: A200) and BetaShares Sustainability leaders Diversified Bond ETF – Currency Hedged ETF (ASX: GBND) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the A200 ETF
The Betashares A200 ETF provides exposure to the largest 200 Australian companies, based on market capitalisation. Unlike many other Australian shares ETFs, A200 uses the Solactive Australia 200 Index. This is virtually the same thing as the indices provided by S&P/ASX, as it also uses a market capitalisation weighting.
According to our most recent data, the A200 ETF had $1803.97 million of money invested. With A200’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 Australian shares 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.
Like the look of the A200 ETF? Grab our ETF free investment report.
The GBND ETF – a quick look for savvy investors
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.
With our numbers for October 2021, GBND’s FUM stood at $167.66 million. Since the GBND’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 GBND ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.49% for the GBND ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.80.
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.
The BetaShares GBND ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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