Don’t you wonder if now is the time to start analysing the BetaShares Australian Equities Bear (Hedge Fund) ETF (ASX: BEAR) and iShares S&P 500 AUD Hedged ETF (ASX: IHVV)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the BEAR ETF a good investment? Here’s where you start…
The BetaShares BEAR Fund is designed to provide inverse or opposite exposure to the largest Australian shares, based on market capitalisation. When the S&P/ASX 200 Accumulation Index falls, BEAR aims to generate positive returns for investors.
According to our most recent data, the BEAR ETF had $54.76 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 BEAR ETF review, available free when you click this link: access the free investment report.
A quick take of the IHVV ETF
The iShares IHVV ETF provides investors with exposure to the largest 500 US companies. This is a low-cost way to access leading US companies through a single fund.
With our numbers for December 2021, IHVV’s FUM stood at $701.49 million. Since the IHVV’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 IHVV ETF fee load?
iShares, the ETF issuer, charges a yearly management fee of 0.001 for the IHVV ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $2.00.
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 IHVV by clicking here?
