1. Exposure
The Vanguard VCF ETF provides investors with exposure to high-quality debt securities issued by government-owned and government-guaranteed entities, as well as investment-grade corporate issuers from global markets.
The VCF ETF could be used by investors wishing to gain exposure to international credit markets, or those wishing to diversify an existing equity portfolio and create a regular income stream.
2. Funds under management (FUM)
The Vanguard VCF ETF had $197.17 million of money invested when we last pulled the monthly numbers. Given VCF’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Management fees & costs matter
Vanguard charges investors a yearly management fee of 0.30% for the VCF ETF. This means that if you invested $2,000 in VCF for a full year, you could expect to pay management fees of around $6.00.
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.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the VCF ETF. If you’re looking to do some further digging, be sure to read our Vanguard VCF report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
