What does the ESGI ETF do for a diversified portfolio?
The VanEck ESGI ETF provides exposure to sustainable international companies not including Australian or fossil fuel stocks.
Investors could use this ETF if they are looking to invest in a diversified portfolio of sustainable international companies that have demonstrated a commitment to environmental, social and governance (ESG) factors.
How big is the VanEck ESGI ETF?
The VanEck ESGI ETF had $125.14 million of money invested when we last pulled the monthly numbers. Given ESGI’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.
ESGI ETF fees reviewed
VanEck charges investors a yearly management fee of 0.55% for the ESGI ETF. This means that if you invested $2,000 in ESGI for a full year, you could expect to pay management fees of around $11.00.
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.
Next steps
Even if you like what you see, before diving straight into buying the ESGI ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our VanEck ESGI report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
So how can you actually invest in the ESGI ETF? In the month of June 2023, you can buy the ESGI ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy ESGI for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
