1. What does the VTS ETF do for investors?
The Vanguard VTS ETF provides investors with broad, diversified exposure to the US market. The ETF is not hedged, meaning investors are also exposed to exchange rate fluctuations.
The VTS ETF could be used by investors to gain broad exposure to the US share market. This is one of the most highly-diversified US equity ETFs available on the ASX.
2. Funds under management (FUM)
The Vanguard VTS ETF had $2945.11 million of money invested when we last pulled the monthly numbers. Given VTS’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. Don’t forget about the fees & costs
Vanguard charges investors a yearly management fee of 0.03% for the VTS ETF. This means that if you invested $2,000 in VTS for a full year, you could expect to pay management fees of around $0.60.
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.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the VTS ETF. Before you go any further, take a look at our free Vanguard VTS report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
