1. Exposure
The Vanguard VEQ ETF provides investors with exposure to a diversified portfolio of large-cap companies listed in major European markets.
The VEQ ETF could be used by investors who are seeking to diversify equity portfolios which are heavily focused on the Australian or US markets. This ETF could be used to build out and diversify the core of an existing portfolio.
2. Funds under management (FUM)
The Vanguard VEQ ETF had $288.08 million of money invested when we last pulled the monthly numbers. Given VEQ’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. Management fees & costs matter
Vanguard charges investors a yearly management fee of 0.35% for the VEQ ETF. This means that if you invested $2,000 in VEQ for a full year, you could expect to pay management fees of around $7.00.
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 VEQ ETF. If you’re looking to do some further digging, be sure to read our Vanguard VEQ 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.
