On the ASX, the iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) and ETF Securities ROBO Global Robotics and Automation ETF (ASX: ROBO) might be worth digging into in 2022.
What to know about the iShares ISO ETF
The iShares ISO ETF provides exposure to 200 small cap Australian shares. This is a low-cost way to access small Australian companies through a single fund.
According to our most recent data, the ISO ETF had $151.04 million of money invested. With ISO’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.
Keep learning about the ISO ETF. Click here to access our free ETF review.
The ETF Securities ROBO ETF – key points
The ETFS ROBO ETF provides investors with exposure to the global value chain of robotics, automation and artificial intelligence (RAAI) related companies. Some investors consider RAAI-related companies as disruptors to industries across the globe and thus, a ‘thematic’ or ‘megatrend’ to invest in.
With our numbers for October 2021, ROBO’s FUM stood at $266.1 million. Since the ROBO’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the ROBO ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.69% for the ROBO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $13.80.
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.
Before rushing out and investing in the ROBO fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on ROBO.
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