Are the QFN and VDCO ETFs worth watching in Jun?

The BetaShares S&P/ASX 200 Financials Sector ETF (ASX:QFN)

The BetaShares QFN ETF is a more unique ETF that invests in financial companies from within the ASX 200, while excluding A-REITs. This ETF has a substantial exposure to the ‘Big 4’ Australian banks.

According to our most recent data, the QFN ETF had $52.27 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.

To learn more about the QFN ETF, read our free ETF investment report once you’re done with this article.

Vanguard Diversified Conservative Index ETF (ASX:VDCO)

The Vanguard VDCO ETF provides investors with exposure to a portfolio of other Vanguard funds/ETFs. Meaning, it’s an ETF which invests only in other funds/ETFs — in this case, it only invests in funds managed by its own provider, Vanguard. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.

With our numbers for July 2022, VDCO’s FUM stood at $235.57 million. Since the VDCO’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 Index sector should be able to scale well and become profitable for the ETF issuer.

A look at the VDCO ETF fee load?

Vanguard, the ETF issuer, charges a yearly management fee of 0.27% for the VDCO ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $5.40.

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.

Did you know that you get access to our free investment report on Best ETFs Australia? View the free VDCO ETF report by clicking here.