1. What does the GBND ETF do for investors?
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.
Investors could use the GBND ETF to diversify an existing portfolio and gain exposure to Australian bonds that meet responsible investment criteria, or to create a regular income stream from the quarterly distributions offered by this ETF.
2. Funds under management (FUM)
The BetaShares GBND ETF had $179.78 million of money invested when we last pulled the monthly numbers. Given GBND’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
3. Don’t forget about the fees & costs
BetaShares charges investors a yearly management fee of 0.49% for the GBND ETF. This means that if you invested $2,000 in GBND for a full year, you could expect to pay management fees of around $9.80.
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.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the GBND ETF. Before you go any further, take a look at our free BetaShares GBND report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
