Australian and ASX-listed ETFs like the VanEck MOAT ETF (ASX: MOAT) are gaining more attention than ever because of how easy they make it for investors to get exposure to the International shares sector. Here’s a quick review of the MOAT ETF.
What does the MOAT ETF do for a diversified portfolio?
The VanEck MOAT ETF provides investors with exposure to a portfolio of carefully selected US companies which fit the criteria of having a sustainable competitive advantage, sometimes called a ‘moat’.
Investors could use the MOAT ETF as a tactical exposure to high-quality US companies. While the portfolio is smaller and less diversified than most other US equities ETFs, the companies selected are intended to have above-average long-term growth prospects owing to their competitive advantages.
How big is the VanEck MOAT ETF?
The VanEck MOAT ETF had $386.43 million of money invested when we last pulled the monthly numbers. Given MOAT’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
MOAT ETF fees reviewed
VanEck charges investors a yearly management fee of 0.49% for the MOAT ETF. This means that if you invested $2,000 in MOAT for a full year, you could expect to pay management fees of around $9.80.
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.
Next steps
Even if you like what you see, before diving straight into buying the MOAT ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our VanEck MOAT report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
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