It’s time to run a ruler over Vanguard MSCI International Small Companies Index ETF (ASX: VISM) and ETF Securities EURO STOXX 50 ETF (ASX: ESTX). The ETFs invest across the International shares sector.
The Vanguard VISM ETF (ASX:VISM)
The Vanguard VISM ETF provides investors with exposure to a diversified portfolio of small-cap companies from developed countries around the world, excluding Australia.
According to our most recent data, the VISM ETF had $73.9 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the VISM ETF, read our free ETF investment report once you’re done with this article.
ETF Securities ESTX ETF (ASX:ESTX)
The ETFS ESTX ETF provides investors with exposure to 50 blue-chip companies from 12 eurozone countries; namely Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
With our numbers for December 2020, ESTX’s FUM stood at $47.67 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 ESTX ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.35% for the ESTX ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $7.00.
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 ESTX ETF report by clicking here.