In this article, we’ll try to explain why the Betashares Australian Ex-20 Portfolio Diversifier ETF (ASX: EX20) and Vaneck Australian Bank ETF (ASX: MVB) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the EX20 ETF
The BetaShares EX20 ETF provides exposure to the largest 180 Australian shares, based on market capitalisation, excluding the top 20.
According to our most recent data, the EX20 ETF had $167.29 million of money invested. With EX20’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 Australian 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.
Like the look of the EX20 ETF? Grab our ETF free investment report.
The MVB ETF – a quick look for savvy investors
The VanEck MVB ETF provides focused exposure to Australia’s largest industry, the banking sector. This is a low-cost way to invest in the Australian banking industry through a single fund.
With our numbers for December 2020, MVB’s FUM stood at $115.35 million. Since the MVB’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the MVB ETF bad?
Vaneck, the ETF issuer, charges a yearly management fee of 0.28% for the MVB 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.
The Vaneck MVB 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.