Fees drop at Raiz
Investors using the popular spare change investing app Raiz are set to benefit from lower management fees, after the firm passed on cuts to the fees of two of the ETFs its flagship product invests in.
Fees on both the SPDR S&P/ASX 200 ETF (STW) and the iShares Core Composite Bond ETF (IAF) have dropped to the tune of 0.06% and 0.05% respectively. The two ETFs form part of the portfolios Raiz customers can choose to invest in through the app.
According to Raiz, the fees have always been charged by the underlying ETF issuer and not Raiz, so were an indirect cost affecting the performance of investor’s portfolios.
A new product disclosure statement became available to investors earlier this week, which outlines underlying issuer fees of 0.239% p.a. for members invested in the moderately aggressive portfolio.
Underlying issuer fees range from 0.211% p.a. to 0.428% across the firm’s range of investment portfolios.
Speaking to Financial Standard, Raiz Invest managing director George Lucas said the impact to investors would depend on which portfolio they were invested in, according to the differing weight of both ETFs across the portfolios.
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