On the ASX, the BetaShares Legg Mason Real Income Fund (Managed Fund) ETF (ASX: RINC) and Montaka Montaka Global Extension Fund (ASX: MKAX) might be worth digging into in 2022.
What to know about the BetaShares RINC ETF
The BetaShares Legg Mason RINC ETF is an actively managed fund that invests in companies that own physical assets, like A-REITs, utilities and infrastructure. These companies are expected to grow revenues and profits overtime and provide sustainable dividend income to investors.
According to our most recent data, the RINC ETF had $66.77 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Keep learning about the RINC ETF. Click here to access our free ETF review.
The Montaka MKAX ETF – key points
The Montaka Global Extension fund is a listed managed fund which aims to offer investors exposure to long-term structural winning companies in attractive industries. Typically, the MKAX fund aims to hold 15 to 30 long positions in companies which are medium to large cap, together with 10-40 stock-specific short positions.
With our numbers for December 2021, MKAX’s FUM stood at $44.6 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the MKAX ETF bad?
Montaka, the ETF issuer, charges a yearly management fee of 1.25% for the MKAX ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $25.00.
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.
Before rushing out and investing in the MKAX 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 MKAX.
