The SPDR S&P/ASX Australian Bond Fund ETF (ASX:BOND)
The name’s… the SPDR BOND ETF. BOND invests in Australian bonds which are investment grade and denominated in Australian dollars with maturities more than one year.
According to our most recent data, the BOND ETF had $40.31 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 BOND ETF, read our free ETF investment report once you’re done with this article.
Schroder Investment Management Australia Limited Real Return Fund (Managed Fund) ETF (ASX:GROW)
The Schroder GROW Fund is a multi-asset class, actively-managed portfolio of global assets. The fund aims to deliver a return of 5% per annum above inflation (before fees), over a rolling 3-year period.
With our numbers for July 2022, GROW’s FUM stood at $63.09 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
A look at the GROW ETF fee load?
Schroder Investment Management Australia Limited, the ETF issuer, charges a yearly management fee of 0.83% for the GROW ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $16.60.
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 GROW ETF report by clicking here.
