Don’t you wonder if now is the time to start analysing the Montaka Montaka Global Extension Fund (ASX: MKAX) and Vaneck MSCI Australian Sustainable Equity ETF (ASX: GRNV)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the MKAX ETF a good investment? Here’s where you start…
The Montaka Global Extension fund is a listed managed fund which aims to offer investors exposure to long-term structural winning companies in attractive industries. Typically, the MKAX fund aims to hold 15 to 30 long positions in companies which are medium to large cap, together with 10-40 stock-specific short positions.
According to our most recent data, the MKAX ETF had $42.65 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Get our team’s MKAX ETF review, available free when you click this link: access the free investment report.
A quick take of the GRNV ETF
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.
With our numbers for July 2021, GRNV’s FUM stood at $63.93 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
Are the fees for the GRNV ETF bad?
Vaneck, the ETF issuer, charges a yearly management fee of 0.35% for the GRNV ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $7.00.
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 GRNV by clicking here?
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