What the VanEck REIT ETF actually does
The VanEck Vectors FTSE International Property (Hedged) ETF gives investors exposure to developed international property markets outside of Australia.
The REIT ETF may be used by investors who want to diversify their portfolio by gaining exposure to international property markets, or by those who are looking for income from regular distributions.
REIT meets our minimum FUM criteria
The VanEck REIT ETF had $167.11 million of money invested when we last pulled the monthly numbers. Given REIT’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget REIT’s fees
VanEck charges investors a yearly management fee of 0.43% for the REIT ETF. This means that if you invested $2,000 in REIT for a full year, you could expect to pay management fees of around $8.60.
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.
What to do next
If you’re weighing up investing in the REIT ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free VanEck REIT report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
So how can you actually invest in the REIT ETF? In the month of October 2022, you can buy the REIT 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 REIT for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
