The Vanguard International Credit Securities Index (Hedged) ETF (ASX: VCF) could be one to watch in October and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the Vanguard VCF ETF actually does
The Vanguard VCF ETF provides investors with exposure to high-quality debt securities issues by government-owned and government-guaranteed entities, as well as investment-grade corporate issuers from global markets.
VCF meets our minimum FUM criteria
The Vanguard VCF ETF had $183.29 million of money invested when we last pulled the monthly numbers. Given VCF’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget VCF’s fees
Vanguard charges investors a yearly management fee of 0.3% for the VCF ETF. This means that if you invested $2,000 in VCF for a full year, you could expect to pay management fees of around $6.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
What to do next
If you’re weighing up investing in the VCF ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free Vanguard VCF report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the Fixed interest – International sector to compare your options.
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