What is the VCF ETF used for?
The Vanguard VCF ETF provides investors with exposure to high-quality debt securities issued by government-owned and government-guaranteed entities, as well as investment-grade corporate issuers from global markets.
The VCF ETF could be used by investors wishing to gain exposure to international credit markets, or those wishing to diversify an existing equity portfolio and create a regular income stream.
Keep an eye on FUM
The Vanguard VCF ETF had $197.17 million of money invested when we last pulled the monthly numbers. Given VCF’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
Vanguard charges investors a yearly management fee of 0.30% for the VCF ETF. This means that if you invested $2,000 in VCF for a full year, you could expect to pay management fees of around $6.00.
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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the VCF ETF. Before doing anything, take a look at our Vanguard VCF report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
