1. Find out what the VEU ETF invests in
The Vanguard VEU ETF exposes investors to many of the largest listed companies from both developed and emerging economies around the world, excluding the US.
VEU might be used by investors who want to diverisfy away from Australian shares, but who also already hold exposure to the US market in their portfolio. This ETF may suit investors who are willing to accept the higher risks of emerging markets in the hope of higher returns.
2. Has the ETF reached scale?
The Vanguard VEU ETF had $2184.33 million of money invested when we last pulled the monthly numbers. Given VEU’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 0.08% for the VEU ETF. This means that if you invested $2,000 in VEU for a full year, you could expect to pay management fees of around $1.60.
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.
Where to from here in 2020?
So there you have it, three tips to weigh up the VEU ETF. Before you go any further, take a look at our Vanguard VEU 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.
