Like us, you might have noticed the Vaneck MSCI Australian Sustainable Equity ETF (ASX: GRNV) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the GRNV ETF do for investors?
For a diversified portfolio of sustainable Australian companies, the VanEck GRNV ETF may be of interest. This ETF focuses on Australian companies that have high environmental, social and governance (ESG) performance, based on MSCI ESG Research. GRNV has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
2. Funds under management (FUM)
The Vaneck GRNV ETF had $63.93 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as Vaneck, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
3. Don’t forget about the fees & costs
Vaneck charges investors a yearly management fee of 0.35% for the GRNV ETF. This means that if you invested $2,000 in GRNV for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the GRNV ETF. Before you go any further, take a look at our free Vaneck GRNV report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
[ls_content_block id=”4954″ para=”paragraphs”]
