1. Find out what the VBLD ETF invests in
The Vanguard VBLD ETF gives investors exposure to a range of infrastructure securities listed in developed markets around the world. This ETF also provides exposure to currency fluctuations as it is unhedged.
The VBLD ETF could be used to gain exposure to global infrastructure securities and assets and develop a regular, quarterly income stream. It could be used as a small tactical position, or it could form part of the core of a portfolio, providing diversification and regular distributions.
2. Has the ETF reached scale?
The Vanguard VBLD ETF had $311.91 million of money invested when we last pulled the monthly numbers. Given VBLD’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.
3. Watch the fees (and other costs)
Vanguard charges investors a yearly management fee of 0.47% for the VBLD ETF. This means that if you invested $2,000 in VBLD for a full year, you could expect to pay management fees of around $9.40.
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.
Where to from here in 2020?
So there you have it, three tips to weigh up the VBLD ETF. Before you go any further, take a look at our Vanguard VBLD report – it’s free. Then, to make sure you’ve covered all bases, don’t forget to search our complete list of ASX ETFs to compare your options. You can filter the search results according to sector, issuer, size and more.
