If you’re on the hunt for exposure to the Australian shares sector, it could be worth adding the VanEck Vectors Australian Property ETF (ASX: MVA) to your ASX watchlist. Let’s take a closer look at this VanEck ETF.
What is the MVA ETF used for?
The VanEck MVA ETF provides investors with exposure to the Australian property market by investing in a portfolio of ASX-listed property companies and real estate investment trusts (REITs).
Keep an eye on FUM
The VanEck MVA ETF had $346.75 million of money invested when we last pulled the monthly numbers. Given MVA’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
Fees and costs for investors
VanEck charges investors a yearly management fee of 0.35% for the MVA ETF. This means that if you invested $2,000 in MVA for a full year, you could expect to pay management fees of around $7.00.
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.
These are just some of the considerations or factors you would need to look at when weighing up the MVA ETF. Before doing anything, take a look at our VanEck MVA report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.