On the ASX, the Vanguard Australian Property Securities Index ETF (ASX: VAP) and iShares Core Cash ETF (ASX: BILL) might be worth digging into in 2021.
What to know about the Vanguard VAP ETF
The Vanguard VAP ETF provides investors with low-cost exposure to listed Australian property companies and real estate investment trusts (REITs).
According to our most recent data, the VAP ETF had $1843.48 million of money invested. With VAP’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 VAP ETF. Click here to access our free ETF review.
The iShares BILL ETF – key points
The iShares BILL ETF provides investors with exposure to short-term Australian dollar-denominated bank bills with term to maturities of up to three months.
With our numbers for December 2020, BILL’s FUM stood at $539.51 million. Since the BILL’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 BILL ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.07% for the BILL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $1.40.
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.
Before rushing out and investing in the BILL 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 BILL.
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