On the ASX, the Vaneck Australian Equal Weight ETF (ASX: MVW) and Vanguard MSCI Index International Shares ETF (ASX: VGS) might be worth digging into in 2021.
What to know about the Vaneck MVW ETF
The VanEck MVW ETF provides exposure to over 60 of the largest and most liquid Australian shares, equally weighted. By equally weighting shares, this ETF aims to reduce concentration risk in specific Australian stocks and sectors.
According to our most recent data, the MVW ETF had $1414.44 million of money invested. With MVW’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 Australian 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 MVW ETF. Click here to access our free ETF review.
The Vanguard VGS ETF – key points
The Vanguard VGS ETF provides exposure to listed companies from developed markets around the world, excluding Australia. This ETF is not hedged so it is exposed to currency fluctuations.
With our numbers for December 2020, VGS’s FUM stood at $2624.2 million. Since the VGS’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 VGS ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.18% for the VGS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $3.60.
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 VGS 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 VGS.
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