Don’t you wonder if now is the time to start analysing the Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND) and BetaShares Australian Investment Grade Bond ETF (ASX: CRED)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – International and Fixed interest – Australia sectors, respectively.
Is the VBND ETF a good investment? Here’s where you start…
The Vanguard VBND ETF provides investors with exposure to government debt and investment-grade corporate debt from developed markets around the world.
According to our most recent data, the VBND ETF had $292.2 million of money invested. With VBND’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 Fixed interest – International 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 VBND ETF review, available free when you click this link: access the free investment report.
A quick take of the CRED ETF
The BetaShares CRED Fund provides investors with exposure to a portfolio a portfolio of investment-grade, fixed-rate Australian corporate bonds.
With our numbers for Oct 2020, CRED’s FUM stood at $429.97 million. Since the CRED’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the CRED ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.25% for the CRED ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.00.
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 CRED by clicking here?