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Does MM like the new BetaShares Global Royalties ETF (ROYL)

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    Does MM like the new BetaShares Global Royalties ETF (ROYL)

    Hi thanks for your ongoing updates I look forward to your daily notes and have recently started to invest some money in your new direct investment portfolio's. I have a question re the new Beta shares royalties ETF. I have held DRR Deterra royalties in my income portfolio for some time now and have have some small growth but and am receiving around 7 % plus franking and I know you recently covered this in one of your notes. I think DRR is in this new ETF plus many other global royalty company's can I have your thoughts on the ETF from an income perspective going forward thanks again. Regards Rob vernon

    Answer

    Hi Rob,

    Obviously its very early days with this BetaShares ETF only listed this week, hence its small $6m market cap.

    • The ETF is made up of investments across a number of different countries, currently, it’s holding the following global exposure – around 51% US, 37% Canada, 8.6% Netherlands, 1.7% Australia and 0.6% UK, spread across a range of industries with the current approx. holdings including OIL & Gas 31%, Mining 32%, Entertainment 14%, Biotech 12% etc.

    DRR only makes up 1.7% of the ETF so not a big holding and while I don’t know a lot about Texas Pacific, it accounts for 14% of the portfolio which will clearly have a big influence on the performance. Overall, we prefer using the more passive index tracking ETFs rather than ETFs that are targeting a specific strategy like this one – more can go wrong in them.

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