How the CNEW ETF fits into an ASX portfolio
The VanEck CNEW ETF provides investors with exposure to Chinese companies primarily from the IT, health care, consumer staples and consumer discretionary sectors.
Investors could use this ETF to gain exposure to growth industries within the Chinese economy.
CNEW meets our minimum level for FUM
The VanEck CNEW ETF had $114.84 million of money invested when we last pulled the monthly numbers. Given CNEW’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.
What about management fees and costs?
VanEck charges investors a yearly management fee of 0.95% for the CNEW ETF. This means that if you invested $2,000 in CNEW for a full year, you could expect to pay management fees of around $19.00.
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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our VanEck CNEW report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
So how can you actually invest in the CNEW ETF? In the month of January 2024, you can buy the CNEW 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 CNEW for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
