Don’t you wonder if now is the time to start analysing the SPDR S&P/ASX Australian Bond Fund ETF (ASX: BOND) and iShares MSCI Japan ETF (ASX: IJP)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and International shares sectors, respectively.
Is the BOND ETF a good investment? Here’s where you start…
The name’s… the SPDR BOND ETF. BOND invests in Australian bonds which are investment grade and denominated in Australian dollars with maturities more than one year.
According to our most recent data, the BOND ETF had $48.99 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.
Get our team’s BOND ETF review, available free when you click this link: access the free investment report.
A quick take of the IJP ETF
The iShares IJP ETF provides investors with exposure to around 85% of the Japanese stock market. This is a low-cost way to access a specific market through a single fund.
With our numbers for December 2021, IJP’s FUM stood at $428.15 million. Since the IJP’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 IJP ETF fee load?
iShares, the ETF issuer, charges a yearly management fee of 0.0047 for the IJP ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $9.40.
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.
Did you know: you can get our full ETF review of IJP by clicking here?
