Is the RDV ETF a good investment? Here’s where you start…
The Russell Investments RDV ETF invests in a diversified portfolio of high-yielding âblue chipâ Australian companies. This ETF tracks this Russell Australia High Dividend Index.
According to our most recent data, the RDV ETF had $237.76 million of money invested. With RDV’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws 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 lowers the chance that the ETF issuer will close the ETF.
Get our team’s RDV ETF review, available free when you click this link: access the free investment report.
A quick take of the VHY ETF
The Vanguard VHY ETF provides exposure to the largest dividend-paying Australian shares, based on market capitalisation and forecast dividend yield. It tracks the FTSE Australian High Dividend Yield Index. The index excludes real estate investment trusts (REITs) and caps the total exposure to any sector/industry at 40%.
With our numbers for July 2022, VHY’s FUM stood at $2307.04 million. Since the VHY’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 Yield/income sector should be able to scale well and become profitable for the ETF issuer.
A look at the VHY ETF fee load?
Vanguard, the ETF issuer, charges a yearly management fee of 0.25% for the VHY ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $5.00.
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.
Did you know: you can get our full ETF review of VHY by clicking here?
