It’s time to run a ruler over VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL) and Fidante Partners Limited ActiveX Ardea Real Outcome Bond Fund (Managed Fund) ETF (ASX: XARO). The ETFs invest in the International shares and Fixed interest – International sectors/industries, respectively.
The VanEck QUAL ETF (ASX:QUAL)
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.
According to our most recent data, the QUAL ETF had $1116.6 million of money invested. With QUAL’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.
To learn more about the QUAL ETF, read our free ETF investment report once you’re done with this article.
Fidante Partners Limited XARO ETF (ASX:XARO)
The ActiveX Ardea XARO Fund provides investors with exposure to an actively managed portfolio of fixed income products, particularly government bonds, while implementing risk management strategies that aim to provide protection from interest rate fluctuations and general market volatility.
With our numbers for July 2020, XARO’s FUM stood at $220.3 million. Since the XARO’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Active ETF (e.g. ETMF) sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the XARO ETF bad?
Fidante Partners Limited, the ETF issuer, charges a yearly management fee of 0.5% for the XARO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $10.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free XARO ETF report by clicking here.