Best ETFs Australia quick review: SFY and VTS

Don’t you wonder if now is the time to start analysing the SPDR S&P/ASX 50 ETF (ASX: SFY) and Vanguard US Total Market Shares Index ETF (ASX: VTS)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.

Is the SFY ETF a good investment? Here’s where you start…

The SPDR SFY ETF is the only Australian ETF providing exposure to Australia’s top 50 listed companies, by market capitalisation. SFY provides a low-cost way to invest in the ASX’s top 50 companies through a single fund.

According to our most recent data, the SFY ETF had $735.77 million of money invested. With SFY’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.

Get our team’s SFY ETF review, available free when you click this link: access the free investment report.

A quick take of the VTS ETF

The Vanguard VTS ETF provides investors with broad, diversified exposure to the US market. The ETF is not hedged, meaning investors are also exposed to exchange rate fluctuations.

With our numbers for July 2022, VTS’s FUM stood at $2945.11 million. Since the VTS’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 VTS ETF fee load?

Vanguard, the ETF issuer, charges a yearly management fee of 0.03% for the VTS ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $0.60.

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 VTS by clicking here?

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With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

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Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

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