Don’t you wonder if now is the time to start analysing the VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) and Vanguard Diversified High Growth Index ETF (ASX: VDHG)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Diversified ETF sectors, respectively.
Is the MOAT ETF a good investment? Here’s where you start…
The VanEck MOAT ETF provides investors with exposure to a portfolio of carefully selected US companies which fit the criteria of having a sustainable competitive advantage, sometimes called a ‘moat’.
According to our most recent data, the MOAT ETF had $195.03 million of money invested. With MOAT’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.
Get our team’s MOAT ETF review, available free when you click this link: access the free investment report.
A quick take of the VDHG ETF
The Vanguard VDHG ETF provides investors with exposure to a portfolio of other Vanguard funds. Meaning, since the VDHG ETF invests in other shares, bond or cash ETFs, it gives you exposure to multiple asset classes with a single investment. In this way, VDHG is designed to be a diversified portfolio by itself.
With our numbers for December 2020, VDHG’s FUM stood at $675.14 million. Since the VDHG’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 VDHG ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.27% for the VDHG ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.40.
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.
Did you know: you can get our full ETF review of VDHG by clicking here?
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