In this article, we’ll try to explain why the VanEck Vectors MSCI International Sustainable Equity ETF (ASX: ESGI) and iShares S&P Global Healthcare ETF (ASX: IXJ) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the ESGI ETF
The VanEck ESGI ETF provides exposure to sustainable international companies not including Australian or fossil fuel stocks.
According to our most recent data, the ESGI ETF had $130.58 million of money invested. With ESGI’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 International 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 ESGI ETF? Grab our ETF free investment report.
The IXJ ETF – a quick look for savvy investors
The iShares IXJ ETF provides investors with a targeted exposure to over 100 global healthcare companies. This includes companies in the pharmaceutical, biotechnology, and medical device space.
With our numbers for December 2021, IXJ’s FUM stood at $1137.09 million. Since the IXJ’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 IXJ ETF fee load?
iShares, the ETF issuer, charges a yearly management fee of 0.0047 for the IXJ ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $9.40.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
The iShares IXJ 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.
