How ASX investors can use the ZYUS ETF
The Global X ZYUS ETF provides investors with exposure to a portfolio of 50 high-yielding companies from the S&P 500.
ZYAU invests in 50 high yielding Australian companies, and focuses on companies expected to pay dividends (i.e. forecast returns, not last year’s dividends). You could buy all of these companies yourself using a share brokerage account, but that would be a very expensive and time-consuming process.
The ZYUS ETF is yet to reach scale
The Global X ZYUS ETF had $79.57 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 Global X, 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.
ZYUS ETF fees explained
Global X charges investors a yearly management fee of 0.35% for the ZYUS ETF. This means that if you invested $2,000 in ZYUS for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Putting it all together
If you’re weighing up investing in ZYUS, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Global X ZYUS report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
