Australian and ASX-listed ETFs like the Vanguard VGE ETF (ASX: VGE) 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 VGE ETF.
What does the VGE ETF do for a diversified portfolio?
The Vanguard VGE ETF provides investors with exposure to companies from a broad range of emerging markets, as well as exposure to currency fluctuations as the portfolio is unhedged.
The VGE ETF may be used by investors who are looking to diversify an existing equity portfolio, or by investors with a high risk tolerance who want to gain exposure to emerging markets.
How big is the Vanguard VGE ETF?
The Vanguard VGE ETF had $670.21 million of money invested when we last pulled the monthly numbers. Given VGE’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.
VGE ETF fees reviewed
Vanguard charges investors a yearly management fee of 0.48% for the VGE ETF. This means that if you invested $2,000 in VGE for a full year, you could expect to pay management fees of around $9.60.
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 VGE ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Vanguard VGE 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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