On the ASX, the Vanguard Australian Government Bond Index ETF (ASX: VGB) and BetaShares Global Healthcare ETF – Currency Hedged ETF (ASX: DRUG) might be worth digging into in 2022.
What to know about the Vanguard VGB ETF
The Vanguard VGB ETF provides investors with exposure to a portfolio of Australian Commonwealth Government bonds, state government bonds and bonds from treasury corporations.
According to our most recent data, the VGB ETF had $539.72 million of money invested. With VGB’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 Fixed interest – Australia 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.
Keep learning about the VGB ETF. Click here to access our free ETF review.
The BetaShares DRUG ETF – key points
The BetaShares DRUG ETF provides investors with exposure to leading global healthcare companies, hedged into Australian dollars.
With our numbers for December 2021, DRUG’s FUM stood at $170.38 million. Since the DRUG’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 DRUG ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.57% for the DRUG ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.40.
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.
Before rushing out and investing in the DRUG fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on DRUG.
