Getting exposure to the International shares sector has never been easier thanks to ASX ETFs like the Vanguard All-World ex US Shares Index ETF (ASX: VEU). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the VEU ETF could be used in portfolios
The Vanguard VEU ETF exposes investors to many of the largest listed companies from both developed and emerging economies around the world, excluding the US.
VEU exceeds our minimum market cap (FUM) criteria
The Vanguard VEU ETF had $1817.59 million of money invested when we last pulled the monthly numbers. Given VEU’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.
VEU’s fees & costs explained
Vanguard charges investors a yearly management fee of 0.09% for the VEU ETF. This means that if you invested $2,000 in VEU for a full year, you could expect to pay management fees of around $1.80.
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.
This is just a quick overview of the VEU ETF. Before ‘testing the depth of water with both feet’ so to speak, be sure to read the VEU ETF’s Product Disclosure Statement (PDS), available on the Vanguard website, or speak to your financial adviser. For another handy resource, take a look at our Vanguard VEU report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.