Like us, you might have noticed the Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the VAE ETF do for investors?
The Vanguard VAE ETF provides exposure to a portfolio of companies listed in Asia, excluding Japan, Australia and New Zealand. As the ETF is not hedged, investors are also exposed to currency fluctuations.
2. Funds under management (FUM)
The Vanguard VAE ETF had $280.33 million of money invested when we last pulled the monthly numbers. Given VAE’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
3. Don’t forget about the fees & costs
Vanguard charges investors a yearly management fee of 0.40% for the VAE ETF. This means that if you invested $2,000 in VAE for a full year, you could expect to pay management fees of around $8.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
These are just a few of the considerations or factors you would need to look at when running the rule over the VAE ETF. Before you go any further, take a look at our free Vanguard VAE report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.