Best ETFs Australia quick review: POU and VCF

Don’t you wonder if now is the time to start analysing the BetaShares British Pound ETF (ASX: POU) and Vanguard International Credit Securities Index (Hedged) ETF (ASX: VCF)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the British pound and Fixed interest – International sectors, respectively.

Is the POU ETF a good investment? Here’s where you start…

The BetaShares POU ETF provides investors with exposure to the performance of the British pound relative to the Australian dollar.

According to our most recent data, the POU ETF had $13 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.

Get our team’s POU ETF review, available free when you click this link: access the free investment report.

A quick take of the VCF ETF

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.

With our numbers for July 2022, VCF’s FUM stood at $197.17 million. Since the VCF’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.

A look at the VCF ETF fee load?

Vanguard, the ETF issuer, charges a yearly management fee of 0.3% for the VCF ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $6.00.

This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.

Did you know: you can get our full ETF review of VCF by clicking here?

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