Some things you should know about the IHEB ETF
The iShares IHEB ETF provides investors with exposure to the performance of global emerging markets bonds that are US dollar-denominated, hedged back into Australian dollars.
According to our most recent data, the IHEB ETF had $41.35 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.
Like the look of the IHEB ETF? Grab our ETF free investment report.
The MVW ETF – a quick look for savvy investors
The VanEck MVW ETF provides exposure to over 60 of the largest and most liquid Australian shares, equally weighted. By equally weighting shares, this ETF aims to reduce concentration risk in specific Australian stocks and sectors.
With our numbers for July 2022, MVW’s FUM stood at $1656.44 million. Since the MVW’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 Equal weight sector should be able to scale well and become profitable for the ETF issuer.
A look at the MVW ETF fee load?
Vaneck, the ETF issuer, charges a yearly management fee of 0.35% for the MVW ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $7.00.
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.
The Vaneck MVW ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
So how can you actually invest the MVW ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Jun 2024, with your free Pearler account you can buy the MVW ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the MVW ETF to take-up this offer. Sounds pretty good, right? To invest in MVW for $0 brokerage, simply click here to visit Pearler’s website and sign up.
