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Want to invest ethically for a brighter future? 
(but still make lots of money)?

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What you should know about the VanEck REIT ETF (ASX:REIT) and ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX:SNAS)

The VanEck Vectors FTSE International Property (Hedged) ETF (ASX: REIT) and ETF Securities ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS) are Exchange-Traded Funds (ETFs) operating in the International shares sector, and aiming to make investing as simple as possible.

How would an investor add REIT to a portfolio?

The VanEck Vectors FTSE International Property (Hedged) ETF gives investors exposure to developed international property markets outside of Australia.

According to our most recent data, the REIT ETF had $55.06 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.

Fees to consider

According to our numbers, the annual management fee on the REIT ETF is 0.43%. The issuer, VanEck, collects this fee automatically.

Meaning, if you invested $2,000 in the REIT ETF for a full year you could expect to pay management fees of around $8.60. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.

A fee comparison

Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.5%, which is $10.00 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the REIT Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.

The REIT ETF could be one to add to your watchlist. If you want to access our full ETF review, click here to get our full report – it’s totally free.

Getting to know the SNAS ETF

The ETF Securities Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS) is an ETF designed for trading, since it provides a negative (or ‘inverse’ or ‘opposite’) exposure to the popular Nasdaq-100 index.

With our numbers for Oct 2020, SNAS’s FUM stood at $24.4 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Hedge fund sector ETFs, using our full list of ETFs.

Are the fees for the SNAS ETF bad?

ETF Securities, the ETF issuer, charges a yearly management fee of 1% for the SNAS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $20.00.

The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.

Picking over ETFs seems too easy to be true: ‘just pick one and put it in your bottom-drawer’. However, it’s important to get it right the first time so that you won’t end up having to chop-and-change positions (and potentially pay extra tax). To make your life a little easier, if you’re looking at the SNAS ETF, make sure you click here to access our analyst’s investment report. It’s free.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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