Are the VDGR and E200 ETFs worth watching in Jul?

It’s time to run a ruler over Vanguard Diversified Growth Index ETF (ASX: VDGR) and SPDR S&P/ASX 200 ESG Fund (ASX: E200). The ETFs invest in the Diversified ETF and Australian shares sectors/industries, respectively.

The Vanguard Diversified Growth Index ETF (ASX:VDGR)

The Vanguard VDGR ETF provides investors with exposure to a portfolio of other Vanguard funds. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.

According to our most recent data, the VDGR ETF had $615.22 million of money invested. With VDGR’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Diversified ETF sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.

To learn more about the VDGR ETF, read our free ETF investment report once you’re done with this article.

SPDR S&P/ASX 200 ESG Fund (ASX:E200)

The SPDR ASX 200 ESG ETF provides investors with exposure to the largest 200 Australian/ASX-listed companies while also being tilted towards companies which exhibit strong Environmental, Social and Governance (ESG) characteristics — and E200 excludes companies in tobacoo and controversial weapons and those which earn more than 5% of their revenue from thermal coal.

With our numbers for July 2022, E200’s FUM stood at $34.96 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Ethical sector ETFs, using our full list of ETFs.

A look at the E200 ETF fee load?

SPDR, the ETF issuer, charges a yearly management fee of 0.13% for the E200 ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $2.60.

This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.

Did you know that you get access to our free investment report on Best ETFs Australia? View the free E200 ETF report by clicking here.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

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