On the ASX, the Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE) and BetaShares Legg Mason Australian Bond Fund (Managed Fund) ETF (ASX: BNDS) might be worth digging into in 2021.
What to know about the Vanguard VAE ETF
The Vanguard VAE ETF provides exposure to a portfolio of companies listed in Asia, excluding Japan, Australia and New Zealand. As the ETF is not hedged, investors are also exposed to currency fluctuations.
According to our most recent data, the VAE ETF had $234.69 million of money invested. With VAE’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.
Keep learning about the VAE ETF. Click here to access our free ETF review.
The BetaShares BNDS ETF – key points
The BetaShares Legg Mason BNDS Fund is an actively managed fund that aims to deliver income and maximise the investment opportunities from Australian fixed income markets.
With our numbers for Oct 2020, BNDS’s FUM stood at $156.72 million. Since the BNDS’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 Active ETF (e.g. ETMF) sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the BNDS ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.42% for the BNDS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.40.
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.
Before rushing out and investing in the BNDS fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on BNDS.
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