In this article, we’ll try to explain why the Vanguard MSCI International Small Companies Index ETF (ASX: VISM) and VanEck Vectors China New Economy ETF (ASX: CNEW) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the VISM ETF
The Vanguard VISM ETF provides investors with exposure to a diversified portfolio of small-cap companies from developed countries around the world, excluding Australia.
According to our most recent data, the VISM ETF had $166.6 million of money invested. With VISM’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 International 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 VISM ETF? Grab our ETF free investment report.
The CNEW ETF – a quick look for savvy investors
The VanEck CNEW ETF provides investors with exposure to Chinese companies primarily from the IT, health care, consumer staples and consumer discretionary sectors.
With our numbers for October 2021, CNEW’s FUM stood at $144.13 million. Since the CNEW’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 CNEW ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.95% for the CNEW ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $19.00.
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.
The VanEck CNEW 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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