In this article, we’ll try to explain why the iShares Core Global Corporate Bond (AUD Hedged) ETF (ASX: IHCB) and VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the IHCB ETF
The iShares IHCB ETF provides investors with access to the performance of investment-grade corporate bonds across global markets and sectors, hedged into Australian dollars. This is a relatively low-cost way to get exposure to global investment-grade corporate bonds in a single fund.
According to our most recent data, the IHCB ETF had $310.97 million of money invested. With IHCB’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 Fixed interest – International 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 IHCB ETF? Grab our ETF free investment report.
The QUAL ETF – a quick look for savvy investors
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.
With our numbers for December 2021, QUAL’s FUM stood at $2831.33 million. Since the QUAL’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 Quality factor sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the QUAL ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.40% for the QUAL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.00.
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 VanEck QUAL 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.
So how can you actually invest the QUAL ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Mar 2022, with your free Pearler account you can buy the QUAL ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the QUAL ETF to take-up this offer. Sounds pretty good, right? To invest in QUAL for $0 brokerage, simply click here to visit Pearler’s website and sign up.
