Don’t you wonder if now is the time to start analysing the Vanguard Global Infrastructure Index ETF (ASX: VBLD) and SPDR S&P/ASX Australian Bond Fund ETF (ASX: BOND)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Fixed interest – Australia sectors, respectively.
Is the VBLD ETF a good investment? Here’s where you start…
The Vanguard VBLD ETF gives investors exposure to a range of infrastructure securities listed in developed markets around the world. This ETF also provides exposure to currency fluctuations as it is unhedged.
According to our most recent data, the VBLD ETF had $107.97 million of money invested. With VBLD’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.
Get our team’s VBLD ETF review, available free when you click this link: access the free investment report.
A quick take of the BOND ETF
The name’s… the SPDR BOND ETF. BOND invests in Australian bonds which are investment grade and denominated in Australian dollars with maturities more than one year.
With our numbers for December 2020, BOND’s FUM stood at $48.73 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the BOND ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.24% for the BOND ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $4.80.
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 BOND by clicking here?