How ASX investors can use the VAE ETF
The Vanguard VAE ETF provides exposure to a portfolio of companies listed in Asia, excluding Japan, Australia and New Zealand. As the ETF is not hedged, investors are also exposed to currency fluctuations.
The VAE ETF could be used by investors who are looking to diversify equity portfolios that are concentrated in the Australian or US markets. It could also be used to gain access to ‘high risk, (possibly) high reward’ emerging markets.
VAE meets our minimum market cap (FUM) criteria
The Vanguard VAE ETF had $348.81 million of money invested when we last pulled the monthly numbers. Given VAE’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.
VAE ETF fees explained
Vanguard charges investors a yearly management fee of 0.40% for the VAE ETF. This means that if you invested $2,000 in VAE for a full year, you could expect to pay management fees of around $8.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Putting it all together
If you’re weighing up investing in VAE, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Vanguard VAE report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
