Why do investors own the Vanguard FTSE Europe Shares ETF?
The Vanguard VEQ ETF provides investors with exposure to a diversified portfolio of large-cap companies listed in major European markets.
According to our most recent data, the VEQ ETF had $288.08 million of money invested. With VEQ’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 International 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.
Fees to consider
According to our numbers, the annual management fee on the VEQ ETF is .35%. The issuer, Vanguard, collects this fee automatically.
Meaning, if you invested $2,000 in the VEQ ETF for a full year you could expect to pay management fees of around $7.00. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.5%, which is $10.00 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the VEQ Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
Don’t stop here, to get our full VEQ ETF review, click through to this ETF review page now.
VanEck Morningstar World ex Australia Wide Moat ETF
The GOAT ETF tracks the performance of the Morningstar Developed Markets ex-Australia Wide Moat Focus Index. The index invests in 50 to 100 âwide moatâ companies, as defined by Morningstar, whose competitive advantages will provide excess returns for 20 years or more.
With our numbers for July 2022, GOAT’s FUM stood at $23.32 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Quality factor sector ETFs, using our full list of ETFs.
A look at the GOAT ETF fee load?
VanEck, the ETF issuer, charges a yearly management fee of 0.55% for the GOAT ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $11.00.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
To discover more facts about the GOAT ETF, read our free ETF investment report.
So how can you actually invest the GOAT ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Jul 2024, with your free Pearler account you can buy the GOAT ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the GOAT ETF to take-up this offer. Sounds pretty good, right? To invest in GOAT for $0 brokerage, simply click here to visit Pearler’s website and sign up.
