In this article, we’ll try to explain why the SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) and BetaShares Australian Government Bond ETF (ASX: AGVT) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the SYI ETF
The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
According to our most recent data, the SYI ETF had $279.87 million of money invested. With SYI’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.
Like the look of the SYI ETF? Grab our ETF free investment report.
The AGVT ETF – a quick look for savvy investors
The BetaShares AGVT ETF provides investors with exposure to a portfolio of high-quality bonds issued by Australian federal and state governments, supranational banks and sovereign agencies.
With our numbers for December 2021, AGVT’s FUM stood at $199.79 million. Since the AGVT’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.
A look at the AGVT ETF fee load?
BetaShares, the ETF issuer, charges a yearly management fee of 0.0022 for the AGVT ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $4.40.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
The BetaShares AGVT 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.
