On the ASX, the Vanguard Diversified Growth Index ETF (ASX: VDGR) and BetaShares Ethical Diversified Balanced ETF (ASX: DBBF) might be worth digging into in 2021.
What to know about the Vanguard VDGR ETF
The Vanguard VDGR ETF provides investors with exposure to a portfolio of other Vanguard funds. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.
According to our most recent data, the VDGR ETF had $349.7 million of money invested. With VDGR’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 Diversified ETF 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 VDGR ETF. Click here to access our free ETF review.
The BetaShares DBBF ETF – key points
The BetaShares DBBF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.
With our numbers for December 2020, DBBF’s FUM stood at $3.77 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 Ethical sector ETFs, using our full list of ETFs.
Are the fees for the DBBF ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.26% for the DBBF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.20.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Before rushing out and investing in the DBBF 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 DBBF.
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