In this article, we’ll try to explain why the Magellan Global Equities Fund Currency Hedged (Managed Fund) ETF (ASX: MHG) and Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the MHG ETF
The Magellan MHG Fund is an actively-managed portfolio that invests in a select array of international companies. The fund typically selects between 20-40 global equities and hedges its exposure against the Australian dollar to manage currency risks.
According to our most recent data, the MHG ETF had $275.76 million of money invested. With MHG’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.
Like the look of the MHG ETF? Grab our ETF free investment report.
The VBND ETF – a quick look for savvy investors
The Vanguard VBND ETF provides investors with exposure to government debt and investment-grade corporate debt from developed markets around the world.
With our numbers for Oct 2020, VBND’s FUM stood at $292.2 million. Since the VBND’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 VBND ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.2% for the VBND ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $4.00.
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.
The Vanguard VBND ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.