Australian and ASX-listed ETFs like the InvestSMART INIF ETF (ASX: INIF) 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 INIF ETF.
What does the INIF ETF do for a diversified portfolio?
The Intelligent Investor INIF Fund is an actively managed ETF, with a focus on a research-led, value investing approach. This fund also focuses on providing investors with exposure to companies with a sustainable income yield.
The Intelligent Investor INIF Fund could be suitable for investors looking for an actively managed portfolio of Australian stocks, led by an in-house research team. Many of these Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
How big is the InvestSMART INIF ETF?
The InvestSMART INIF ETF had $77.34 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 InvestSMART, 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.
INIF ETF fees reviewed
InvestSMART charges investors a yearly management fee of 0.97% for the INIF ETF. This means that if you invested $2,000 in INIF for a full year, you could expect to pay management fees of around $19.40.
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 INIF ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our InvestSMART INIF 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.
