Don’t you wonder if now is the time to start analysing the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) and BetaShares FTSE 100 ETF (ASX: F100)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the VSO ETF a good investment? Here’s where you start…
The Vanguard VSO ETF provides exposure to a diversified portfolio of Australian small caps and tracks the MSCI Australian Shares Small Cap Index. This is a low-cost way to access the performance of Australian small-cap shares through a single fund.
According to our most recent data, the VSO ETF had $354.16 million of money invested. With VSO’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.
Get our team’s VSO ETF review, available free when you click this link: access the free investment report.
A quick take of the F100 ETF
The BetaShares F100 ETF provides investors with exposure to the largest 100 blue-chip companies on the London Stock Exchange (LSE), by market capitalisation.
With our numbers for July 2020, F100’s FUM stood at $133.04 million. Since the F100’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the F100 ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.45% for the F100 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.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
Did you know: you can get our full ETF review of F100 by clicking here?