Is SFIF a good ETF?
SFIF is the Seed Financial Income Fund Active ETF. We classify it under Bonds, AU, and Active. With about $142 million in assets it is a solidly established fund.
On a total-return basis, SFIF has delivered 5.55% a year over 10 years (ranked 74th of 108 ETFs we track), 5.52% a year over 5 years (ranked 110th of 188 ETFs we track), 6.49% a year over 3 years (ranked 162nd of 226 ETFs we track), and 5.83% a year over 1 year (ranked 174th of 308 ETFs we track).
The management fee of 0.7% is on the higher side. For comparison, similar ETFs average around 0.45%. If cost is your priority, IAF (0.1%), VAF (0.1%), and OZBD (0.19%) cover similar ground for less. It pays a healthy 5.33% 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 4.12%), meaning a relatively smooth ride. Its 10-year Sharpe ratio of 0.8 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is somewhat elevated at about 45% a year — close to half the holdings turn over annually, which starts to realise capital gains more often and chips away at after-tax returns.
Strengths
- Pays a useful 5.33% income yield.
- Low volatility (4.12% over 10 years) for a smoother ride.
Things to watch
- Pricier than similar ETFs, which average around 0.45%.
- Cheaper alternatives exist: IAF, VAF, and OZBD.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What SFIF'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.
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.