What is the MVR ETF used for?
The VanEck MVR ETF provides focused exposure to the Australian resources sector, which is a significant part of the Australian economy. This is a low-cost way to invest in the Australian resources industry through a single fund.
The MVR ETF could be used by investors looking to invest in Australia’s resources sector. This ETF tracks the MVIS Australia Resources Index and uses a rules-based methodology focusing on liquidity.
Keep an eye on FUM
The Vaneck MVR ETF had $238.5 million of money invested when we last pulled the monthly numbers. Given MVR’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
Vaneck charges investors a yearly management fee of 0.35% for the MVR ETF. This means that if you invested $2,000 in MVR for a full year, you could expect to pay management fees of around $7.00.
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 MVR ETF. Before doing anything, take a look at our Vaneck MVR report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
So how can you actually invest in the MVR ETF? In the month of June 2024, you can buy the MVR 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 MVR for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
