It’s time to run a ruler over BetaShares British Pound ETF (ASX: POU) and Vanguard US Total Market Shares Index ETF (ASX: VTS). The ETFs invest in the British pound and International shares sectors/industries, respectively.
The BetaShares POU ETF (ASX:POU)
The BetaShares POU ETF provides investors with exposure to the performance of the British pound relative to the Australian dollar.
According to our most recent data, the POU ETF had $16.59 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.
To learn more about the POU ETF, read our free ETF investment report once you’re done with this article.
Vanguard VTS ETF (ASX:VTS)
The Vanguard VTS ETF provides investors with broad, diversified exposure to the US market. The ETF is not hedged, meaning investors are also exposed to exchange rate fluctuations.
With our numbers for December 2021, VTS’s FUM stood at $3219.77 million. Since the VTS’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 VTS ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.03% for the VTS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $0.60.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free VTS ETF report by clicking here.
