How the VVLU ETF fits into an ASX portfolio
The Vanguard VVLU Fund is an actively-managed ETF which invests in small, mid and large-cap companies across global equity markets, focusing on companies which have low prices relative to fundamental measures of value.
VVLU might be used by investors who want global exposure and a diversified investment, as well as investors who subscribe to the value style of investing.
VVLU meets our minimum level for FUM
The Vanguard VVLU ETF had $567.88 million of money invested when we last pulled the monthly numbers. Given VVLU’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?
Vanguard charges investors a yearly management fee of 0.29% for the VVLU ETF. This means that if you invested $2,000 in VVLU for a full year, you could expect to pay management fees of around $5.80.
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 Vanguard VVLU 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.
