It’s time to run a ruler over Vanguard Australian Shares Index ETF (ASX: VAS) and ETF Securities S&P Biotech ETF (ASX: CURE). The ETFs invest in the Australian shares and International shares sectors/industries, respectively.
The Vanguard VAS ETF (ASX:VAS)
The Vanguard VAS ETF provides exposure to the largest 300 Australian shares, based on market capitalisation. This is a low-cost way to access top Australian companies through a single fund.
According to our most recent data, the VAS ETF had $5588.59 million of money invested. With VAS’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 Australian 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 VAS ETF, read our free ETF investment report once you’re done with this article.
ETF Securities CURE ETF (ASX:CURE)
The ETFS CURE ETF provides investors with exposure to the US biotechnology sub-industry within the health care sector. CURE adopts an equally weighted strategy, which allocates greater exposure to small and mid-cap shares compared to a market capitalisation weighted approach.
With our numbers for July 2020, CURE’s FUM stood at $8.84 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the CURE ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.45% for the CURE ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.00.
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 CURE ETF report by clicking here.