If you’re considering getting exposure to the Fixed interest – Australia sector, the Russell Investments Australian Select Corporate Bond ETF (ASX: RCB) might be one ASX ETF to watch in December.
How the RCB ETF fits into an ASX portfolio
The Russell Investments RCB ETF is a portfolio of high-quality Australian fixed income securities that meet a range of size, credit and maturity selection criteria.
RCB could be used by investors looking for a portfolio of investment-grade Australian corporate bonds, and aims to track the performance of the DBIQ 0-4 year Investment Grade Australian Corporate Bond Index.
RCB meets our minimum level for FUM
The Russell Investments RCB ETF had $279.87 million of money invested when we last pulled the monthly numbers. Given RCB’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.
What about management fees and costs?
Russell Investments charges investors a yearly management fee of 0.28% for the RCB ETF. This means that if you invested $2,000 in RCB for a full year, you could expect to pay management fees of around $5.60.
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
Before buying any ETF based on what you read here on Best ETFs, check out our Russell Investments RCB report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
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