Australian and ASX-listed ETFs like the SPDR SYI ETF (ASX: SYI) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Australian shares sector. Here’s a quick review of the SYI ETF.
What does the SYI ETF do for a diversified portfolio?
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.
This ETF could be used by investors looking for a diversified portfolio of Australian companies that have a track record of paying regular, tax-effective dividends to their shareholders.
How big is the SPDR SYI ETF?
The SPDR SYI ETF had $279.87 million of money invested when we last pulled the monthly numbers. Given SYI’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
SYI ETF fees reviewed
SPDR charges investors a yearly management fee of 0.35% for the SYI ETF. This means that if you invested $2,000 in SYI for a full year, you could expect to pay management fees of around $7.00.
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
Even if you like what you see, before diving straight into buying the SYI ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our SPDR SYI report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
