On the ASX, the Betashares Australian Ex-20 Portfolio Diversifier ETF (ASX: EX20) and Vaneck Australian Bank ETF (ASX: MVB) might be worth digging into in 2021.
What to know about the Betashares EX20 ETF
The BetaShares EX20 ETF provides exposure to the largest 180 Australian shares, based on market capitalisation, excluding the top 20.
According to our most recent data, the EX20 ETF had $232.36 million of money invested. With EX20’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 EX20 ETF. Click here to access our free ETF review.
The Vaneck MVB ETF – key points
The VanEck MVB ETF provides focused exposure to Australia’s largest industry, the banking sector. This is a low-cost way to invest in the Australian banking industry through a single fund.
With our numbers for July 2021, MVB’s FUM stood at $167.92 million. Since the MVB’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 MVB ETF bad?
Vaneck, the ETF issuer, charges a yearly management fee of 0.28% for the MVB ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.60.
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 MVB 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 MVB.
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