Don’t you wonder if now is the time to start analysing the VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) and Vanguard Diversified Conservative Index ETF (ASX: VDCO)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Diversified ETF sectors, respectively.
Is the MOAT ETF a good investment? Here’s where you start…
The VanEck MOAT ETF provides investors with exposure to a portfolio of carefully selected US companies which fit the criteria of having a sustainable competitive advantage, sometimes called a ‘moat’.
According to our most recent data, the MOAT ETF had $167.45 million of money invested. With MOAT’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.
Get our team’s MOAT ETF review, available free when you click this link: access the free investment report.
A quick take of the VDCO ETF
The Vanguard VDCO ETF provides investors with exposure to a portfolio of other Vanguard funds/ETFs. Meaning, it’s an ETF which invests only in other funds/ETFs — in this case, it only invests in funds managed by its own provider, Vanguard. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.
With our numbers for Oct 2020, VDCO’s FUM stood at $127.42 million. Since the VDCO’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 Diversified sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the VDCO ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.27% for the VDCO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.40.
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 VDCO by clicking here?