Don’t you wonder if now is the time to start analysing the BetaShares Global Agriculture ETF – Currency Hedged ETF (ASX: FOOD) and Vaneck Australian Resources ETF (ASX: MVR)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the FOOD ETF a good investment? Here’s where you start…
The BetaShares FOOD ETF provides investors with exposure to the performance of the largest agricultural companies in the world (excluding Australia), hedged into Australian dollars.
According to our most recent data, the FOOD ETF had $60.83 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.
Get our team’s FOOD ETF review, available free when you click this link: access the free investment report.
A quick take of the MVR ETF
The VanEck MVR ETF provides focused exposure to the Australian resources sector, which is a significant part of the Australian economy. This is a low-cost way to invest in the Australian resources industry through a single fund.
With our numbers for December 2021, MVR’s FUM stood at $141.44 million. Since the MVR’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 MVR ETF fee load?
Vaneck, the ETF issuer, charges a yearly management fee of 0.0035 for the MVR ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $7.00.
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.
Did you know: you can get our full ETF review of MVR by clicking here?
So how can you actually invest the MVR ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of May 2022, with your free Pearler account you can buy the MVR 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 MVR ETF to take-up this offer. Sounds pretty good, right? To invest in MVR for $0 brokerage, simply click here to visit Pearler’s website and sign up.
