1. Exposure
The Vanguard VISM ETF provides investors with exposure to a diversified portfolio of small-cap companies from developed countries around the world, excluding Australia.
The VISM ETF could be used by investors with a relatively high risk tolerance and a desire to diversify away from Australian equities. Small-cap companies would be considered by many investors to be ‘high risk, high reward’.
2. Funds under management (FUM)
The Vanguard VISM ETF had $197.26 million of money invested when we last pulled the monthly numbers. Given VISM’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 0.33% for the VISM ETF. This means that if you invested $2,000 in VISM for a full year, you could expect to pay management fees of around $6.60.
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 now?
These are just some of the considerations or factors you would need to consider when weighing up the VISM ETF. If you’re looking to do some further digging, be sure to read our Vanguard VISM 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.
