How the VESG ETF fits into an ASX portfolio
The Vanguard VESG ETF provides investors with exposure to a broad range of companies from developed economies around the world, while excluding companies involved with fossil fuels, alcohol, tobacco, gambling, weapons, nuclear power, and adult entertainment.
The VESG ETF could by used by investors who want to gain broad exposure to developed international equity markets while avoiding companies that could be deemed unethical.
VESG meets our minimum level for FUM
The Vanguard VESG ETF had $636.36 million of money invested when we last pulled the monthly numbers. Given VESG’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
Vanguard charges investors a yearly management fee of 0.18% for the VESG ETF. This means that if you invested $2,000 in VESG for a full year, you could expect to pay management fees of around $3.60.
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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our Vanguard VESG report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
