In this article, we’ll try to explain why the Vaneck MSCI Australian Sustainable Equity ETF (ASX: GRNV) and VanEck Vectors Australian Corporate Bond Plus ETF (ASX: PLUS) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the GRNV ETF
For a diversified portfolio of sustainable Australian companies, the VanEck GRNV ETF may be of interest. This ETF focuses on Australian companies that have high environmental, social and governance (ESG) performance, based on MSCI ESG Research. GRNV has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
According to our most recent data, the GRNV ETF had $58.93 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Like the look of the GRNV ETF? Grab our ETF free investment report.
The PLUS ETF – a quick look for savvy investors
The VanEck PLUS ETF provides investors with exposure to a portfolio of Australian dollar-denominated bonds from investment-grade companies.
With our numbers for Oct 2020, PLUS’s FUM stood at $252.01 million. Since the PLUS’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the PLUS ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.32% for the PLUS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.40.
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.
The VanEck PLUS ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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