What is the MVE ETF used for?
The VanEck MVE ETF provides exposure to a diversified portfolio of large Australian companies and is the only ETF tracking the S&P/ASX Midcap 50 Index in Australia. The MVE ETF is designed to capture the performance of the top 50 Australian midcap companies based on market cap, ranking from 51 to 100.
MVE could be used by investors looking to invest in large Australian companies outside the top 50, which are likely to grow their profit over time and pay regular tax-effective dividends to their shareholders.
Keep an eye on FUM
The Vaneck MVE ETF had $164.23 million of money invested when we last pulled the monthly numbers. Given MVE’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.
Fees and costs for investors
Vaneck charges investors a yearly management fee of 0.45% for the MVE ETF. This means that if you invested $2,000 in MVE for a full year, you could expect to pay management fees of around $9.00.
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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the MVE ETF. Before doing anything, take a look at our Vaneck MVE report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
So how can you actually invest in the MVE ETF? In the month of October 2022, you can buy the MVE 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 MVE for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
