1. Exposure
The BetaShares EINC Fund provides investors with an actively managed portfolio of high-yielding Australian companies. Legg Mason Asset Management is the investment manager for this fund.
The BetaShares EINC Fund could be used by investors looking for high dividend paying stocks, from a broad basket of Australia’s largest public companies. The fund focuses on lowering sector and stock concentration, compared to the ASX 200. These Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
2. Funds under management (FUM)
The BetaShares EINC ETF had $27.06 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 BetaShares, 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
BetaShares charges investors a yearly management fee of 0.85% for the EINC ETF. This means that if you invested $2,000 in EINC for a full year, you could expect to pay management fees of around $17.00.
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 now?
These are just some of the considerations or factors you would need to consider when weighing up the EINC ETF. If you’re looking to do some further digging, be sure to read our BetaShares EINC 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.
