Thoughts on hybrid ETFs

Thanks Jill,

We’ve had a lot to do with Hybrids over the years and been big proponents of them for a long time. I’ve had involvement with a Hybrid SMA through Shaw that was the first to launch in Australia and it proved very popular (and still does) – has around $1bn in it. In more recent times Betashares have launched two hybrid ETFs run by Chris Joye from Coolabah Capital. The traditional Betashares HBRD ETF is priced at 0.55% however they also charge 15.5% performance above the benchmark. The ETF has returned 4.3% pa since inception. It has around $1.1b in it. The newer bank hybrid ETF (BHYB) is charged at 0.35% with no performance fee. It doesn’t yet have a track record and assets currently sit at $8m. I don’t like the performance fee in the first ETF and prefer the 2nd given the bulk of listed hybrids on the market are from the banks anyway. As a guide, the Shaw Hybrid SMA has returned 6.40% pa before fees which are also 0.55% (no performance fee). I have little doubt that all of these funds will be subscribing to the new ANZ note (ANZPI).

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Hybrid ETF (HBRD)

LAST UPDATED 05/06/2021 07:12

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Hybrid ETF (HBRD)

LAST UPDATED 05/06/2021 07:12