It’s time to run a ruler over VanEck Vectors Emerging Income Opportunities Active ETF (Managed Fund) ETF (ASX: EBND) and VanEck Vectors Australian Property ETF (ASX: MVA). The ETFs invest in the Fixed interest – International and Australian shares sectors/industries, respectively.
The VanEck EBND ETF (ASX:EBND)
The VanEck EBND ETF is an actively-managed ETF which provides investors with exposure to a portfolio of bonds and currencies from a range of emerging markets.
According to our most recent data, the EBND ETF had $93.29 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.
To learn more about the EBND ETF, read our free ETF investment report once you’re done with this article.
VanEck MVA ETF (ASX:MVA)
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).
With our numbers for July 2021, MVA’s FUM stood at $544.42 million. Since the MVA’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 Property sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the MVA ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.35% for the MVA 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 that you get access to our free investment report on Best ETFs Australia? View the free MVA ETF report by clicking here.
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