Find out what the ETF does
The BetaShares FOOD ETF provides investors with exposure to the performance of the largest agricultural companies in the world (excluding Australia), hedged into Australian dollars.
The BetaShares FOOD ETF could be used by investors looking for tactical exposure to the performance of global agricultural companies outside of Australia, while reducing currency risk through hedging strategies. Due to improved living standards and rising populations, demand for agricultural products and services is expected to continue to rise.
FOOD’s FUM meets our hurdle
The BetaShares FOOD ETF had $142.89 million of money invested when we last pulled the monthly numbers. Given FOOD’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.
Pay attention to yearly costs & fees
BetaShares charges investors a yearly management fee of 0.57% for the FOOD ETF. This means that if you invested $2,000 in FOOD for a full year, you could expect to pay management fees of around $11.40.
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 FOOD, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free BetaShares FOOD report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.
