Find out what the ETF does
The BetaShares Legg Mason BNDS Fund is an actively managed fund that aims to deliver income and maximise the investment opportunities from Australian fixed income markets.
Investors could use the BNDS Fund to diversify an existing portfolio and gain exposure to Australian bonds, or to create a regular income stream from the monthly distributions offered by this ETF.
BNDS’s FUM meets our hurdle
The BetaShares BNDS ETF had $215.45 million of money invested when we last pulled the monthly numbers. Given BNDS’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 Fixed interest – Australia 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 0.42% for the BNDS ETF. This means that if you invested $2,000 in BNDS for a full year, you could expect to pay management fees of around $8.40.
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 BNDS, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free BetaShares BNDS report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Fixed interest – Australia sector to do a good comparison.
