Is RSM a good ETF?
RSM is the Russell Investments Australian Semi-Government Bond ETF. We classify it under Bonds and AU. With about $62 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, RSM has delivered 1.71% a year over 10 years (ranked 96th of 108 ETFs we track), 0.49% a year over 5 years (ranked 159th of 188 ETFs we track), 3.58% a year over 3 years (ranked 196th of 226 ETFs we track), and 0.61% a year over 1 year (ranked 253rd 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 0.26% is reasonable. That's cheaper than the typical 0.32% for similar ETFs. If cost is your priority, VAF (0.1%), VGB (0.16%), and IGB (0.18%) cover similar ground for less. It pays a healthy 3.95% yield, attractive if you want regular income. 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 10 years its volatility has been low (annualised standard deviation around 3.48%), meaning a relatively smooth ride.
Portfolio turnover is modest at about 20% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Low-cost: a 0.26% management fee keeps more of the return in your pocket.
- Pays a useful 3.95% income yield.
- Low volatility (3.48% over 10 years) for a smoother ride.
Things to watch
- Has lagged most peers over 10 years (96th of 108).
- Cheaper alternatives exist: VAF, VGB, and IGB.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What RSM's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
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.