On the ASX, the Morningstar International Shares Active ETF (Managed Fund) ETF (ASX: MSTR) and Vanguard FTSE Europe Shares ETF (ASX: VEQ) might be worth digging into in 2021.
What to know about the Morningstar MSTR ETF
The Morningstar MSTR Fund is an actively-managed fund that invests in a select portfolio of international companies for long-term capital growth. The fund hedges its exposure against the Australian dollar to manage currency risks.
According to our most recent data, the MSTR ETF had $108.4 million of money invested. With MSTR’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.
Keep learning about the MSTR ETF. Click here to access our free ETF review.
The Vanguard VEQ ETF – key points
The Vanguard VEQ ETF provides investors with exposure to a diversified portfolio of large-cap companies listed in major European markets.
With our numbers for Dec 2020, VEQ’s FUM stood at $233.67 million. Since the VEQ’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 VEQ ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.35% for the VEQ 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 VEQ 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 VEQ.
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