What is the SYI ETF used for?
The SPDR SYI ETF invests in a diversified portfolio of high-yielding âblue chipâ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
This ETF could be used by investors looking for a diversified portfolio of Australian companies that have a track record of paying regular, tax-effective dividends to their shareholders.
Keep an eye on FUM
The SPDR SYI ETF had $290.68 million of money invested when we last pulled the monthly numbers. Given SYI’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
SPDR charges investors a yearly management fee of 0.35% for the SYI ETF. This means that if you invested $2,000 in SYI 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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the SYI ETF. Before doing anything, take a look at our SPDR SYI report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
