2 Down-Under ETFs for investors in 2022 and beyond: SNAS & RINC

We think the BetaShares Legg Mason Real Income Fund (Managed Fund) ETF (ASX: RINC) and ETF Securities ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS) ASX ETFs could be worthy of closer inspection. Here’s why…

1. The BetaShares RINC ETF (ASX:RINC) ETF

The BetaShares Legg Mason RINC ETF is an actively managed fund that invests in companies that own physical assets, like A-REITs, utilities and infrastructure. These companies are expected to grow revenues and profits overtime and provide sustainable dividend income to investors.

According to our most recent data, the RINC ETF had $66.77 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 advisors.

Fees to be considered

According to our numbers, the annual management fee on the RINC ETF is .85%. The issuer, BetaShares, collects this fee automatically.

Meaning, if you invest $2,000 in the RINC ETF for a full year you could expect to pay management fees of around $17.00. This fee is different from the fee you pay to your brokerage provider (eg CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread’ for the ETF.

A fee comparison

Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too expensive, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.51%, which is $10.20 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the RINC Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.

Want to hear more about the RINC ETF? See our free investment review.

2. The ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX:SNAS) ETF

The ETF Securities Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS) is an ETF designed for trading, since it provides a negative (or ‘inverse’ or ‘opposite’) exposure to the popular Nasdaq-100 index.

With our numbers for December 2021, SNAS’s FUM stood at $16.57 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 Hedge fund sector ETFs, using our full list of ETFs.

A look at the SNAS ETF fee load?

ETF Securities, the ETF issuer, charges an annual management fee of 1.% for the SNAS ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $20.00.

The management fee is above the average for all ETFs on our list of ASX ETFsbut keep in mind the ETF may be able to justify the higher price tag with superior performance over time.

Want to know more? Get our team’s free SNAS ETF review. Simply click here now.

So how can you actually invest the SNAS ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Aug 2022, with your free Pearler account you can buy the SNAS ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.

You can invest as little as $500 in the SNAS ETF to take up this offer. Sounds pretty good, right? To invest in SNAS for $0 brokerage, simply click here to visit Pearler’s website and sign up.


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