Find out what the ETF does
The BetaShares DZZF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.
DZZF could be used by investors looking for a diversified ETF that provides ethical exposure to a range of asset classes. This ETF has a high-growth risk profile, which means that 10% of the portfolio is made up of defensive assets (bonds and cash) and the other 90% is made up from growth assets (Australian and international shares).
DZZF’s FUM does not meet our minimum hurdle
The BetaShares DZZF ETF had $39.42 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.
Pay attention to yearly costs & fees
BetaShares charges investors a yearly management fee of 0.39% for the DZZF ETF. This means that if you invested $2,000 in DZZF for a full year, you could expect to pay management fees of around $7.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% 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.
Our takeaway
If you’re thinking about investing in DZZF, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free BetaShares DZZF report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Diversified ETF sector to do a good comparison.
