The Global X S&P/ASX 200 High Dividend ETF (ASX:ZYAU)
The Global X ZYAU ETF invests in 50 high-dividend stocks from the S&P/ASX 200 Index. To avoid ‘yield traps’, ZYAU uses a forward looking dividend forecast system to identify and capture the highest dividend-paying companies, and the portfolio weighting tilts towards these companies.
According to our most recent data, the ZYAU ETF had $71.99 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the ZYAU ETF, read our free ETF investment report once you’re done with this article.
BetaShares Global Healthcare ETF – Currency Hedged ETF (ASX:DRUG)
The BetaShares DRUG ETF provides investors with exposure to leading global healthcare companies, hedged into Australian dollars.
With our numbers for July 2022, DRUG’s FUM stood at $164.04 million. Since the DRUG’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
A look at the DRUG ETF fee load?
BetaShares, the ETF issuer, charges a yearly management fee of 0.57% for the DRUG ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $11.40.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free DRUG ETF report by clicking here.
