What the BetaShares HVST ETF actually does
With the goal of providing a franked income stream of at least 1.5x the yield of the broad Australian sharemarket on an annual basis, BetaShares HVST ETF aims to pay income to investors monthly. Please note that HVST does not aim to track an index.
HVST was designed with SMSF and retiree investors in mind, and focuses on providing a tax-effective monthly income stream. HVST also implements a risk management strategy that defends against losses during sustained market declines and reduces portfolio volatility.
HVST meets our minimum FUM criteria
The BetaShares HVST ETF had $170.93 million of money invested when we last pulled the monthly numbers. Given HVST’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget HVST’s fees
BetaShares charges investors a yearly management fee of 0.90% for the HVST ETF. This means that if you invested $2,000 in HVST for a full year, you could expect to pay management fees of around $18.00.
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 to do next
If you’re weighing up investing in the HVST ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free BetaShares HVST report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
