How ASX investors can use the INIF ETF
The Intelligent Investor INIF Fund is an actively managed ETF, with a focus on a research-led, value investing approach. This fund also focuses on providing investors with exposure to companies with a sustainable income yield.
The Intelligent Investor INIF Fund could be suitable for investors looking for an actively managed portfolio of Australian stocks, led by an in-house research team. Many of 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.
The INIF ETF is yet to reach scale
The InvestSMART INIF ETF had $71.54 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 InvestSMART, 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.
INIF ETF fees explained
InvestSMART charges investors a yearly management fee of 0.97% for the INIF ETF. This means that if you invested $2,000 in INIF for a full year, you could expect to pay management fees of around $19.40.
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.
Putting it all together
If you’re weighing up investing in INIF, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free InvestSMART INIF report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
