Can the GBND and ISEC ETFs be part of an ASX ETF portfolio?

On the ASX, the BetaShares Sustainability leaders Diversified Bond ETF – Currency Hedged ETF (ASX: GBND) and iShares Enhanced Cash ETF (ASX: ISEC) might be worth digging into in 2022.

What to know about the BetaShares GBND ETF

The BetaShares GBND ETF provides investors with exposure to a portfolio of fixed-rate, investment-grade global and Australian bonds, with a significant allocation to “green bonds” which are issued to directly fund projects that have positive environmental and/or climate benefits.

According to our most recent data, the GBND ETF had $179.78 million of money invested. With GBND’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Fixed interest – International sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.

Keep learning about the GBND ETF. Click here to access our free ETF review.

The iShares ISEC ETF – key points

The iShares ISEC ETF provides investors with exposure to higher-yielding, short-term money market instruments, including floating rate notes. ISEC seeks to outperform the S&P/ASX Bank Bill Index (before fees and expenses).

With our numbers for July 2022, ISEC’s FUM stood at $306.34 million. Since the ISEC’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 ISEC ETF fee load?

iShares, the ETF issuer, charges a yearly management fee of 0.12% for the ISEC ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $2.40.

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.

Before rushing out and investing in the ISEC fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on ISEC.

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With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

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Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

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