In this article, we’ll try to explain why the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) and VanEck Vectors MSCI International Sustainable Equity ETF (ASX: ESGI) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the VSO ETF
The Vanguard VSO ETF provides exposure to a diversified portfolio of Australian small caps and tracks the MSCI Australian Shares Small Cap Index. This is a low-cost way to access the performance of Australian small-cap shares through a single fund.
According to our most recent data, the VSO ETF had $723.46 million of money invested. With VSO’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 Australian shares 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.
Like the look of the VSO ETF? Grab our ETF free investment report.
The ESGI ETF – a quick look for savvy investors
The VanEck ESGI ETF provides exposure to sustainable international companies not including Australian or fossil fuel stocks.
With our numbers for December 2021, ESGI’s FUM stood at $130.58 million. Since the ESGI’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.
A look at the ESGI ETF fee load?
VanEck, the ETF issuer, charges a yearly management fee of 0.0055 for the ESGI ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $11.00.
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 ESGI 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 ESGI ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Apr 2022, with your free Pearler account you can buy the ESGI 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 ESGI ETF to take-up this offer. Sounds pretty good, right? To invest in ESGI for $0 brokerage, simply click here to visit Pearler’s website and sign up.
