Find out what the ETF does
The Vanguard VDBA ETF provides investors with exposure to a portfolio of other Vanguard funds. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.
The VDBA ETF might be used by investors who are wanting a simple way to establish a diversified portfolio with balanced weightings. This ETF may suit investors who are looking for both capital growth and a regular income stream.
VDBA’s FUM meets our hurdle
The Vanguard VDBA ETF had $621.19 million of money invested when we last pulled the monthly numbers. Given VDBA’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 Diversified ETF sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Pay attention to yearly costs & fees
Vanguard charges investors a yearly management fee of 0.27% for the VDBA ETF. This means that if you invested $2,000 in VDBA for a full year, you could expect to pay management fees of around $5.40.
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.
Our takeaway
If you’re thinking about investing in VDBA, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Vanguard VDBA report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Diversified ETF sector to do a good comparison.
