In this article, we’ll try to explain why the VanEck Vectors Australian Property ETF (ASX: MVA) and Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the MVA ETF
The VanEck MVA ETF provides investors with exposure to the Australian property market by investing in a portfolio of ASX-listed property companies and real estate investment trusts (REITs).
According to our most recent data, the MVA ETF had $544.42 million of money invested. With MVA’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.
Like the look of the MVA ETF? Grab our ETF free investment report.
The VESG ETF – a quick look for savvy investors
The Vanguard VESG ETF provides investors with exposure to a broad range of companies from developed economies around the world, while excluding companies involved with fossil fuels, alcohol, tobacco, gambling, weapons, nuclear power, and adult entertainment.
With our numbers for July 2021, VESG’s FUM stood at $373.62 million. Since the VESG’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 Ethical sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the VESG ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.18% for the VESG 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.
The Vanguard VESG ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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