Getting exposure to the Australian shares sector has never been easier thanks to ASX ETFs like the VanEck Vectors Australian Property ETF (ASX: MVA). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the MVA ETF could be used in portfolios
The VanEck MVA ETF provides investors with exposure to the Australian property market by investing in a portfolio of ASX-listed property companies and real estate investment trusts (REITs).
The MVA ETF may be used by investors who wish to gain exposure to the Australian property market through listed securities, or those who are wanting to generate income from regular distributions.
MVA exceeds our minimum market cap (FUM) criteria
The VanEck MVA ETF had $672.51 million of money invested when we last pulled the monthly numbers. Given MVA’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
MVA’s fees & costs explained
VanEck charges investors a yearly management fee of 0.35% for the MVA ETF. This means that if you invested $2,000 in MVA for a full year, you could expect to pay management fees of around $7.00.
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.
Bottom line
This is just a quick overview of the MVA ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the MVA ETF’s Product Disclosure Statement (PDS), available on the VanEck website, or speak to your financial adviser. For another handy resource, take a look at our VanEck MVA report. You can also 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.
So how can you actually invest in the MVA ETF? In the month of March 2022, you can buy the MVA ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy MVA for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
