Don’t you wonder if now is the time to start analysing the VanEck Vectors Australian Corporate Bond Plus ETF (ASX: PLUS) and Vanguard Global Value Equity Active ETF (Managed Fund) ETF (ASX: VVLU)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Fixed interest – Australia and International shares sectors, respectively.
Is the PLUS ETF a good investment? Here’s where you start…
The VanEck PLUS ETF provides investors with exposure to a portfolio of Australian dollar-denominated bonds from investment-grade companies.
According to our most recent data, the PLUS ETF had $257.7 million of money invested. With PLUS’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 – Australia 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 PLUS ETF review, available free when you click this link: access the free investment report.
A quick take of the VVLU ETF
The Vanguard VVLU Fund is an actively-managed ETF which invests in small, mid and large-cap companies across global equity markets, focusing on companies which have low prices relative to fundamental measures of value.
With our numbers for Dec 2020, VVLU’s FUM stood at $53.55 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 Value sector ETFs, using our full list of ETFs.
Are the fees for the VVLU ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.28% for the VVLU ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.60.
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: you can get our full ETF review of VVLU by clicking here?