If you’re looking for an ASX ETF in the Australian shares sector, chances are, the Vaneck MSCI Australian Sustainable Equity ETF (ASX: GRNV) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use 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.
The GRNV ETF is yet to reach scale
The Vaneck GRNV ETF had $58.93 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as Vaneck, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
GRNV ETF fees explained
Vaneck charges investors a yearly management fee of 0.35% for the GRNV ETF. This means that if you invested $2,000 in GRNV for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Putting it all together
If you’re weighing up investing in GRNV, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Vaneck GRNV report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
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