In this article, we’ll try to explain why the Vanguard International Fixed Interest Index (Hedged) ETF (ASX: VIF) and VanEck Vectors MSCI International Sustainable Equity ETF (ASX: ESGI) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the VIF ETF
The Vanguard VIF ETF provides investors with exposure to high-quality securities issued by governments from around the world.
According to our most recent data, the VIF ETF had $609.11 million of money invested. With VIF’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 – International 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.
Like the look of the VIF ETF? Grab our ETF free investment report.
The ESGI ETF – a quick look for savvy investors
The VanEck ESGI ETF provides exposure to sustainable international companies not including Australian or fossil fuel stocks.
With our numbers for December 2020, ESGI’s FUM stood at $55.66 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 ESGI ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.55% for the ESGI ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.00.
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.
The VanEck ESGI ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.