It’s time to run a ruler over Vaneck S&P/ASX MidCap 50 ETF (ASX: MVE) and Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD). The ETFs invest in the Australian shares and International shares sectors/industries, respectively.
The Vaneck MVE ETF (ASX:MVE)
The VanEck MVE ETF provides exposure to a diversified portfolio of large Australian companies and is the only ETF tracking the S&P/ASX Midcap 50 Index in Australia. The MVE ETF is designed to capture the performance of the top 50 Australian midcap companies based on market cap, ranking from 51 to 100.
According to our most recent data, the MVE ETF had $178.98 million of money invested. With MVE’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 Australian 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 MVE ETF, read our free ETF investment report once you’re done with this article.
Vanguard VGAD ETF (ASX:VGAD)
The Vanguard VGAD ETF provides exposure to listed companies from developed markets around the world excluding Australia. This ETF is hedged to Australian dollars to minimise the impact of currency fluctuations.
With our numbers for Dec 2020, VGAD’s FUM stood at $1374.17 million. Since the VGAD’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 VGAD ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.21% for the VGAD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $4.20.
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 that you get access to our free investment report on Best ETFs Australia? View the free VGAD ETF report by clicking here.