What are the Vaneck MVW and SPDR SYI ETFs designed to do?
The VanEck MVW ETF provides exposure to over 60 of the largest and most liquid Australian shares, equally weighted. By equally weighting shares, this ETF aims to reduce concentration risk in specific Australian stocks and sectors.
The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
For more information on the MVW ETF, see our ASX MVW review.
ASX: MVW versus ASX: SYI price performance
We’ll keep it easy and just study the fees. Based on our data for December 2021, the MVW ETF has a management expense ratio (MER) of 0.35% while the SYI ETF’s yearly fee was 0.35%.So MVW comes out on top. That said, a more useful metric to know is the fee quartiles that these ETFs find themselves in (note: quartile 1 is best). For example, any ETF which has a fee below 0.3% would be considered in our first (best) quartile.
How do they perform?
Performance matters. Keep in mind, performance isn’t everything — and past performance is not indicative of future performance. It’s just one part of a much bigger picture. The reason we say performance is not everything is because of volatility of financial markets and the economy from one year to the next. Some ETFs and funds can put in a solid return one year just to generate lacking returns the next time around. That’s why we prefer three-year or seven-year track records over one-year track records. It can smooth out the temporary performances caused by external factors. Both ETFs have achieved our three-year performance hurdle. As of December 2021, the MVW ETF had an average annual return of 14.20%. During the same time, the SYI ETF returned 13.08%.
Okay, one final thing. Let’s talk about the company responsible for the ETF. There are too many factors that go into our internal scoring of fund providers to step through in this article. The provider behind the MVW ETF is Vaneck. VanEck ranks highly for our scores of ETF providers and issuers in Australia. Our team considers VanEck to be one of Australia’s leading providers of specialised ETFs and funds for retail investors and advisers. Meanwhile, SYI’s provider is SPDR. SPDR ranks highly for our scores of ETF providers and issuers in Australia. We think SPDR is one of Australia’s top 10 ETF providers for advisers and institutions, and its ETFs on the ASX provide good exposure to particular financial markets for retail investors.
Our takeaway
Did you know we have free reports? View our ASX MVW review and ASX SYI review today.
In summary, the MVW ETF rates higher for our internal scoring methodology but not by much compared to SYI.
Please, keep in mind, there is much more to selecting a good ETF. That’s why you should now use these skills to find the best ETF you can. If you want the name of our team’s top ETF pick for 2022, keep reading…
