Australian and ASX-listed ETFs like the Russell Investments RARI ETF (ASX: RARI) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Australian shares sector. Here’s a quick review of the RARI ETF.
What does the RARI ETF do for a diversified portfolio?
The Russell Investments RARI ETF invests in companies that demonstrate positive environmental, social and governance (ESG) characteristics. RARI also negatively screens out companies that have significant involvement in activities that are deemed inconsistent with responsible investment considerations.
Investors could use this ETF if they are looking to invest in a diversified portfolio of Australian companies that have demonstrated a commitment to ESG factors. RARI tracks the Russell Australia ESG High Dividend Index.
How big is the Russell Investments RARI ETF?
The Russell Investments RARI ETF had $284.4 million of money invested when we last pulled the monthly numbers. Given RARI’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
RARI ETF fees reviewed
Russell Investments charges investors a yearly management fee of 0.45% for the RARI ETF. This means that if you invested $2,000 in RARI for a full year, you could expect to pay management fees of around $9.00.
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.
Next steps
Even if you like what you see, before diving straight into buying the RARI ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Russell Investments RARI report for a more comprehensive overview of this ETF. While you’re on our website, 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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