If you’re on the hunt for exposure to the Australian shares sector, it could be worth adding the ETF Securities S&P/ASX 300 High Yield Plus ETF (ASX: ZYAU) to your ASX watchlist. Let’s take a closer look at this ETF Securities ETF.
What is the ZYAU ETF used for?
The ETFS ZYAU ETF aims to track the S&P/ASX 300 Shareholder Yield Index, and invests in 40 stocks from within that index with the highest shareholder yields.
The ZYAU 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.
Keep an eye on FUM
The ETF Securities ZYAU ETF had $95.62 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as ETF Securities, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
Fees and costs for investors
ETF Securities charges investors a yearly management fee of 0.35% for the ZYAU ETF. This means that if you invested $2,000 in ZYAU 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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the ZYAU ETF. Before doing anything, take a look at our ETF Securities ZYAU report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
So how can you actually invest in the ZYAU ETF? In the month of May 2022, you can buy the ZYAU ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy ZYAU for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
