Is B1SM a good ETF?
B1SM is the Bell Global Emerging Companies Class A Active ETF. We classify it under EM, Market-Cap, Small-Cap, and Active. With about $428 million in assets it is a solidly established fund.
On a total-return basis, B1SM has delivered 3.77% a year over 10 years (ranked 82nd of 108 ETFs we track), -1.22% a year over 5 years (ranked 174th of 188 ETFs we track), -1% a year over 3 years (ranked 223rd of 226 ETFs we track), and -11.17% a year over 1 year (ranked 292nd of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 1.34% is high, which is common for active, geared or thematic strategies and only worth paying if the approach justifies it. For comparison, similar ETFs average around 0.64%. If cost is your priority, AVTE (0.45%), VGE (0.48%), and EMKT (0.69%) cover similar ground for less. It pays a high 6.97% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 13.27%), meaning the kind of swings you'd expect from a diversified equity fund.
Strengths
- High 6.97% income yield — good for investors who want regular cash flow.
Things to watch
- Has lagged most peers over 3 years (223rd of 226).
- A 1.34% management fee is high and compounds against you over time.
- Pricier than similar ETFs, which average around 0.64%.
- Cheaper alternatives exist: AVTE, VGE, and EMKT.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What B1SM's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Emerging markets — developing economies such as China, India, Brazil and Taiwan. High growth potential with materially higher volatility, currency and political risk.
- Market regime
- Often trades at cheaper valuations than developed markets and performs well in global risk-on phases and when the US dollar is weak. Can endure long stretches of underperformance.
- In a portfolio
- A satellite growth allocation for patient investors with a long horizon and tolerance for big swings.
Holdings are weighted by company size, so the largest companies carry the most weight. These funds are cheap, tax-efficient and self-rebalancing.
- Market regime
- Works in almost any regime as a low-maintenance core. The trade-off is concentration — you automatically own more of whatever has already become expensive at the top of a bull market.
- In a portfolio
- The classic buy-and-hold core of most portfolios. Well suited to long-term, hands-off investing.
Smaller companies, which historically carry a long-run 'size premium' alongside greater volatility and lower liquidity.
- Market regime
- Tends to lead early in economic recoveries and falls hardest in recessions and credit crunches, as smaller firms are more economically sensitive.
- In a portfolio
- A long-horizon satellite tilt for extra growth — expect a bumpier ride than large-cap and broad-market funds.
Actively managed: a portfolio manager hand-picks holdings trying to beat the index, rather than simply tracking it. You pay more in fees for the chance of outperformance.
- Market regime
- Can add value in volatile, falling or inefficient markets where stock-picking and downside protection matter. In long, broad bull markets most active funds struggle to keep up with the cheap index after fees.
- In a portfolio
- Only worth holding if you have genuine conviction in the strategy — decades of evidence show the majority of active funds underperform their benchmark over 10+ years once fees are counted.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.