It’s time to run a ruler over Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) and VanEck Vectors Emerging Income Opportunities Active ETF (Managed Fund) ETF (ASX: EBND). The ETFs invest in the International shares and Fixed interest – International sectors/industries, respectively.
The Vanguard VESG ETF (ASX:VESG)
The Vanguard VESG ETF provides investors with exposure to a broad range of companies from developed economies around the world, while excluding companies involved with fossil fuels, alcohol, tobacco, gambling, weapons, nuclear power, and adult entertainment.
According to our most recent data, the VESG ETF had $151.83 million of money invested. With VESG’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.
To learn more about the VESG ETF, read our free ETF investment report once you’re done with this article.
VanEck EBND ETF (ASX:EBND)
The VanEck EBND ETF is an actively-managed ETF which provides investors with exposure to a portfolio of bonds and currencies from a range of emerging markets.
With our numbers for Oct 2020, EBND’s FUM stood at $20.99 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the EBND ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.95% for the EBND ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $19.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free EBND ETF report by clicking here.