1. Exposure
The Russell Investments RSM ETF is a portfolio of Australian state government fixed-income securities that meet a range of size and maturity selection criteria.
RSM could be used by investors looking for a portfolio of Australian state government bonds, and aims to track the performance of the DBIQ 0-5 year Australian Semi-Government Bond Index.
2. Funds under management (FUM)
The Russell Investments RSM ETF had $46.02 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 Russell Investments, 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.
3. Management fees & costs matter
Russell Investments charges investors a yearly management fee of 0.26% for the RSM ETF. This means that if you invested $2,000 in RSM for a full year, you could expect to pay management fees of around $5.20.
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.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the RSM ETF. If you’re looking to do some further digging, be sure to read our Russell Investments RSM report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
