In this article, we’ll try to explain why the Vanguard Global Multi-Factor Active ETF (Managed Fund) ETF (ASX: VGMF) and VanEck Vectors Emerging Income Opportunities Active ETF (Managed Fund) ETF (ASX: EBND) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the VGMF ETF
The Vanguard VGMF Fund is an actively-managed ETF providing investors with exposure to a portfolio of global companies selected using a rules-based, quantitative approach.
According to our most recent data, the VGMF ETF had $44 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.
Like the look of the VGMF ETF? Grab our ETF free investment report.
The EBND ETF – a quick look for savvy investors
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.
With our numbers for December 2021, EBND’s FUM stood at $134.34 million. Since the EBND’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 Active ETF (e.g. ETMF) sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the EBND ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.95% for the EBND 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 EBND 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.
So how can you actually invest the EBND ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Feb 2022, with your free Pearler account you can buy the EBND ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the EBND ETF to take-up this offer. Sounds pretty good, right? To invest in EBND for $0 brokerage, simply click here to visit Pearler’s website and sign up.
