Australian and ASX-listed ETFs like the Vanguard VVLU ETF (ASX: VVLU) are gaining more attention than ever because of how easy they make it for investors to get exposure to the International shares sector. Here’s a quick review of the VVLU ETF.
What does the VVLU ETF do for a diversified portfolio?
The Vanguard VVLU Fund is an actively-managed ETF which invests in small, mid and large-cap companies across global equity markets, focusing on companies which have low prices relative to fundamental measures of value.
How big is the Vanguard VVLU ETF?
The Vanguard VVLU ETF had $53.55 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 Vanguard, 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.
VVLU ETF fees reviewed
Vanguard charges investors a yearly management fee of 0.28% for the VVLU ETF. This means that if you invested $2,000 in VVLU for a full year, you could expect to pay management fees of around $5.60.
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.
Next steps
Even if you like what you see, before diving straight into buying the VVLU ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Vanguard VVLU report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
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