It’s time to run a ruler over VanEck Vectors China New Economy ETF (ASX: CNEW) and iShares MSCI South Korea Capped Index ETF (ASX: IKO). The ETFs invest across the International shares sector.
The VanEck CNEW ETF (ASX:CNEW)
The VanEck CNEW ETF provides investors with exposure to Chinese companies primarily from the IT, health care, consumer staples and consumer discretionary sectors.
According to our most recent data, the CNEW ETF had $154.76 million of money invested. With CNEW’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.
To learn more about the CNEW ETF, read our free ETF investment report once you’re done with this article.
iShares IKO ETF (ASX:IKO)
The iShares IKO ETF provides investors with exposure to the performance of the large and mid-cap segments of the Korean stock market.
With our numbers for Oct 2020, IKO’s FUM stood at $52.52 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 IKO ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.59% for the IKO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.80.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free IKO ETF report by clicking here.
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