Can IOO and SUBD ETFs be part of an ASX ETF portfolio?


On the ASX, the iShares S&P Global 100 ETF (ASX:IOO) and VanEck Vectors Australian Subordinated Debt ETF (ASX: SUBD) may be worth exploring in 2022.

What to know about the iShares IOO ETF

The iShares IOO ETF offers investors exposure to 100 leading multinational companies in global equity markets. It’s a low-cost way to access a variety of global companies through a single fund.

According to our most recent data, ETF IOO had invested $2721.48 million. With IOO’s total funds under management (FUM) exceeding $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. Typically, our team draws the line at $100 million for ETFs in the international equity sector because we believe that, relative to smaller ETFs, reaching this amount of MUF reduces the chances that the issuer of the ETF closes the ETF.

Keep learning about the IOO ETF. Click here to access our free ETF review.

The VanEck SUBD ETF – key points

The VanEck SUBD ETF invests in a portfolio of Australian dollar denominated subordinated bonds from a range of banks and insurance companies.

With our December 2021 numbers, SUBD’s FUM was $266.45 million. Given that the SUBD’s FUM exceeds $100 million, our investment team would say that the ETF satisfied our minimum criteria for the total amount invested, otherwise known as FUM. A very durable ETF in the index industry should be able to scale well and become profitable for the ETF issuer.

Are SUBD ETF fees bad?

VanEck, the ETF’s issuer, charges an annual management fee of 0.29% for the SUBD ETF. In other words, if you invested $2,000 for a full period of 12 months you can expect to pay a base management fee of around $5.80.

Management fees are above the average of all ETFs in our ASX ETF listbut keep in mind that the ETF may be able to justify the higher price with superior performance over time.

Before you rush out and invest in the SUBD fund, consider checking out our comprehensive list of ETFs to compare the fees and costs of another ETF side-by-side. Another idea might be to use our website to get a free but comprehensive review of investing on SUBD.

So how can you actually invest in the SUBD ETF? By getting a free brokerage account with Pearler. If you join Pearler in March 2022, with your free Pearler account, you can buy the SUBD 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 SUBD ETF to take advantage of this offer. Sounds pretty good, right? To invest in SUBD for $0 brokerage, simply click here to visit Pearler’s website and register.


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