What does the GOAT ETF do for a diversified portfolio?
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.
The GOAT ETF can be used by investors as a specialised exposure to shares of large international companies that exhibit ‘defensive’ characteristics and are reasonably priced, according to analysts at Morningstar.
How big is the VanEck GOAT ETF?
The VanEck GOAT ETF had $23.32 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as VanEck, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
GOAT ETF fees reviewed
VanEck charges investors a yearly management fee of 0.55% for the GOAT ETF. This means that if you invested $2,000 in GOAT for a full year, you could expect to pay management fees of around $11.00.
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
Even if you like what you see, before diving straight into buying the GOAT ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our VanEck GOAT report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
So how can you actually invest in the GOAT ETF? In the month of July 2024, you can buy the GOAT ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy GOAT for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
