On the ASX, the ETF Securities S&P 500 High Yield Low Volatility ETF (ASX: ZYUS) and Vaneck MSCI Australian Sustainable Equity ETF (ASX: GRNV) might be worth digging into in 2021.
What to know about the ETF Securities ZYUS ETF
The ETF Securities ZYUS ETF provides investors with exposure to a portfolio of 50 high-yielding companies from the S&P 500.
According to our most recent data, the ZYUS ETF had $60.26 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.
Keep learning about the ZYUS ETF. Click here to access our free ETF review.
The Vaneck GRNV ETF – key points
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.
With our numbers for Oct 2020, GRNV’s FUM stood at $58.93 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 GRNV ETF bad?
Vaneck, the ETF issuer, charges a yearly management fee of 0.35% for the GRNV ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $7.00.
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.
Before rushing out and investing in the GRNV 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 GRNV.
[ls_content_block id=”4954″ para=”paragraphs”]
