If you’re looking for an ASX ETF in the International shares sector, chances are, the BetaShares Global Income Leaders ETF (ASX: INCM) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the INCM ETF
The BetaShares INCM ETF provides investors with exposure to a diversified global portfolio of 100 high-yielding companies (ex-Australia), with a focus on companies that are able to generate sustainable income for investors.
INCM could be a solution for investors looking for a portfolio of global companies that have a strong track-record of paying dividends. INCM invests in companies from across the globe, with strong geographical exposure to the US market.
The INCM ETF is yet to reach scale
The BetaShares INCM ETF had $20.57 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 BetaShares, 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.
INCM ETF fees explained
BetaShares charges investors a yearly management fee of 0.45% for the INCM ETF. This means that if you invested $2,000 in INCM for a full year, you could expect to pay management fees of around $9.00.
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.
Putting it all together
If you’re weighing up investing in INCM, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free BetaShares INCM report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
