On the ASX, the Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE) and VanEck Vectors China New Economy ETF (ASX: CNEW) might be worth digging into in 2020.
What to know about the Vanguard VAE ETF
The Vanguard VAE ETF provides exposure to a portfolio of companies listed in Asia, excluding Japan, Australia and New Zealand. As the ETF is not hedged, investors are also exposed to currency fluctuations.
According to our most recent data, the VAE ETF had $191.6 million of money invested. With VAE’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 International shares 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.
Keep learning about the VAE ETF. Click here to access our free ETF review.
The VanEck CNEW ETF – key points
The VanEck CNEW ETF provides investors with exposure to Chinese companies primarily from the IT, health care, consumer staples and consumer discretionary sectors.
With our numbers for July 2020, CNEW’s FUM stood at $68.95 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the CNEW ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.95% for the CNEW ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $19.00.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Before rushing out and investing in the CNEW fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on CNEW.
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