Is UMAX a good ETF?
UMAX is the BetaShares S&P 500 Yield Maximiser Complex ETF from BetaShares. It tracks the S&P 500 Index. We classify it under Intl, Dividend, US, and Active. With about $327 million in assets it is a solidly established fund.
On a total-return basis, UMAX has delivered 11.07% a year over 10 years (ranked 35th of 110 ETFs we track), 11.38% a year over 5 years (ranked 46th of 189 ETFs we track), 14.21% a year over 3 years (ranked 94th of 236 ETFs we track), and 8.66% a year over 1 year (ranked 116th of 318 ETFs we track). Its strongest showing is over 5 years, where it sits in the top 24% of all ETFs we track.
The management fee of 0.79% 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 0.55%. If cost is your priority, JEPI (0.4%), JEGA (0.4%), and JHGA (0.4%) cover similar ground for less. It pays a high 5.58% 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 10 years its volatility has been moderate (annualised standard deviation around 10.59%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.84 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Top-24% returns over 5 years (46th of 189 ETFs we track).
- High 5.58% income yield — good for investors who want regular cash flow.
Things to watch
- A 0.79% management fee is high and compounds against you over time.
- Pricier than similar ETFs, which average around 0.55%.
- Cheaper alternatives exist: JEPI, JEGA, and JHGA.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What UMAX's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
Targets higher-yielding, cash-generative companies. Popular with retirees and income investors, and in Australia often comes with valuable franking credits.
- Market regime
- Tilts toward 'value' sectors such as banks, resources and utilities. Can lag in growth-led bull markets and concentrate risk, but tends to be more defensive when markets fall.
- In a portfolio
- Good for investors who want income now. Note the higher distributions are taxable each year, which is less efficient for those in higher brackets and in the accumulation phase.
US-listed companies — the world's deepest, most innovation-heavy market and home to the mega-cap tech names. Has led global returns for over a decade.
- Market regime
- Strong leadership has left valuations high and the index heavily concentrated in a handful of tech giants. Unhedged funds also rise and fall with the AUD/USD exchange rate.
- In a portfolio
- A legitimate core holding for global exposure, but be aware you are buying after a long run of outperformance and at elevated valuations.
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.