The VanEck’s MVA ETF The Best Property ETF?

The VanEck Vectors Australian Property ETF (ASX: MVA) is one of the lowest-cost property ETFs on the ASX.

How ASX ETFs Work

The VanEck Vectors Property ETF

VanEck’s MVA ETF has 12 holdings as well as a small cash allocation and aims to track the performance of the MVIS Australia A-REITs Index. All of the 12 holdings are ASX-listed real estate investment trusts, otherwise known as REITs.

These REITs included are the largest on the ASX, including Goodman (ASX: GMG), Stockland (ASX: SGP) and Charter Hall (ASX: CHC).

Over the past year the MVA ETF has benefited greatly from two RBA rate cuts, returning 26.79% including dividends. Over a five-year period, the ETF has returned 14.64% per year.

Dividends are paid semi-annually, typically in July and January, and the ETF currently offers a trailing dividend yield of 3.93%, 7% franked.

MVA Fees & Risks

The MVA ETF is one of the lowest-cost ASX property ETFs, with a management fee of 0.35% per year. This compares to 0.23% for the Vanguard Property Securities ETF (ASX: VAP).

While MVA might benefit from interest rate cuts, it would also be heavily impacted by an interest rate increase, so interest rate risk is a concern. MVA is also a very concentrated ETF, with only 12 holdings all in the same sector. This means I would consider this ETF a tactical ETF, rather than something that would be used as the core of a portfolio.

My Take On MVA

Vaneck’s MVA ETF is an interesting ETF and one that has the potential to show high returns over the coming months and years if interest rates are cut. However, while data shows house prices may be on the rise again, some commentators are warning that a crash is still coming. Either way, I would only be allocating a small portion of a portfolio to this tactical ETF.

For our number-one ETF pick, check out the free report below.

[ls_content_block id=”695″ para=”paragraphs”]

Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.

$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.

You can INSTANTLY access Owen’s report, and 24/7 access to the Rask community, for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.