1. What does the UMAX ETF do for investors?
The BetaShares UMAX ETF is an actively managed portfolio that provides investors with exposure to US equities, with a focus on enhancing the ETFs dividend yield using a âcovered callâ strategy.
UMAX could be a solution for investors looking for exposure to the top 500 US companies, and is designed to maximise income by using covered calls. This strategy also partially reduces downside risk in falling markets.
2. Funds under management (FUM)
The BetaShares UMAX ETF had $125.8 million of money invested when we last pulled the monthly numbers. Given UMAX’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 International shares 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 0.79% for the UMAX ETF. This means that if you invested $2,000 in UMAX for a full year, you could expect to pay management fees of around $15.80.
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 UMAX ETF. Before you go any further, take a look at our free BetaShares UMAX report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
