On the ASX, the Vanguard Diversified High Growth Index ETF (ASX: VDHG) and BetaShares Diversified Conservative Income ETF (ASX: DZZF) might be worth digging into in 2020.
What to know about the Vanguard VDHG ETF
The Vanguard VDHG ETF provides investors with exposure to a portfolio of other Vanguard funds. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.
According to our most recent data, the VDHG ETF had $441.59 million of money invested. With VDHG’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 Diversified ETF 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.
Keep learning about the VDHG ETF. Click here to access our free ETF review.
The BetaShares DZZF ETF – key points
The BetaShares DZZF ETF provides investors with a diversified portfolio of assets, including shares, property securities, bonds and cash, across Australian and global markets.
With our numbers for July 2020, DZZF’s FUM stood at $3.49 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 Diversified sector ETFs, using our full list of ETFs.
Are the fees for the DZZF ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.26% for the DZZF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.20.
The management fee is below the average for all ETFs on our list of ASX ETFs, which is a good thing.
Before rushing out and investing in the DZZF fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on DZZF.
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