Australian and ASX-listed ETFs like the Vaneck MVW ETF (ASX: MVW) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Australian shares sector. Here’s a quick review of the MVW ETF.
What does the MVW ETF do for a diversified portfolio?
The VanEck MVW ETF provides exposure to over 60 of the largest and most liquid Australian shares, equally weighted. By equally weighting shares, this ETF aims to reduce concentration risk in specific Australian stocks and sectors.
How big is the Vaneck MVW ETF?
The Vaneck MVW ETF had $1224.66 million of money invested when we last pulled the monthly numbers. Given MVW’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.
MVW ETF fees reviewed
Vaneck charges investors a yearly management fee of 0.35% for the MVW ETF. This means that if you invested $2,000 in MVW 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.
Even if you like what you see, before diving straight into buying the MVW ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Vaneck MVW 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.