Australian and ASX-listed ETFs like the VanEck EBND ETF (ASX: EBND) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Fixed interest – International sector. Here’s a quick review of the EBND ETF.
What does the EBND ETF do for a diversified portfolio?
The VanEck EBND ETF is an actively-managed ETF which provides investors with exposure to a portfolio of bonds and currencies from a range of emerging markets.
How big is the VanEck EBND ETF?
The VanEck EBND ETF had $20.99 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as VanEck, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
EBND ETF fees reviewed
VanEck charges investors a yearly management fee of 0.95% for the EBND ETF. This means that if you invested $2,000 in EBND for a full year, you could expect to pay management fees of around $19.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Even if you like what you see, before diving straight into buying the EBND ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our VanEck EBND report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.