What is the PLUS ETF used for?
The VanEck PLUS ETF provides investors with exposure to a portfolio of Australian dollar-denominated bonds from investment-grade companies.
Investors could use the PLUS ETF to diversify an existing portfolio and gain exposure to investment-grade corporate debt, or to create a regular income stream from the quarterly distributions offered by this ETF.
Keep an eye on FUM
The VanEck PLUS ETF had $225.56 million of money invested when we last pulled the monthly numbers. Given PLUS’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 Fixed interest – Australia 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 0.32% for the PLUS ETF. This means that if you invested $2,000 in PLUS for a full year, you could expect to pay management fees of around $6.40.
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 PLUS ETF. Before doing anything, take a look at our VanEck PLUS 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 PLUS ETF? In the month of June 2024, you can buy the PLUS 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 PLUS for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
