If you’re considering getting exposure to the Fixed interest – International sector, the Vanguard International Credit Securities Index (Hedged) ETF (ASX: VCF) might be one ASX ETF to watch in January.
How the VCF ETF fits into an ASX portfolio
The Vanguard VCF ETF provides investors with exposure to high-quality debt securities issued by government-owned and government-guaranteed entities, as well as investment-grade corporate issuers from global markets.
VCF meets our minimum level for FUM
The Vanguard VCF ETF had $182.46 million of money invested when we last pulled the monthly numbers. Given VCF’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
Vanguard charges investors a yearly management fee of 0.3% for the VCF ETF. This means that if you invested $2,000 in VCF for a full year, you could expect to pay management fees of around $6.00.
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.
Before buying any ETF based on what you read here on Best ETFs, check out our Vanguard VCF report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.