On the ASX, the VanEck Vectors China New Economy ETF (ASX: CNEW) and Perennial Value/eInvest Future Impact Small Caps Fund (Managed Fund) ETF (ASX: IMPQ) might be worth digging into in 2021.
What to know about the VanEck CNEW ETF
The VanEck CNEW ETF provides investors with exposure to Chinese companies primarily from the IT, health care, consumer staples and consumer discretionary sectors.
According to our most recent data, the CNEW ETF had $166.02 million of money invested. With CNEW’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.
Keep learning about the CNEW ETF. Click here to access our free ETF review.
The Perennial Value/eInvest IMPQ ETF – key points
The eInvest IMPQ Fund provides actively-managed exposure to Australian and New Zealand-listed small caps. IMPQ also focuses on investing in companies with positive environmental, social and governance (ESG) outcomes.
With our numbers for December 2020, IMPQ’s FUM stood at $4.28 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the IMPQ ETF bad?
Perennial Value/eInvest, the ETF issuer, charges a yearly management fee of 0.99% for the IMPQ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $19.80.
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.
Before rushing out and investing in the IMPQ fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on IMPQ.
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