It’s time to run a ruler over Vanguard MSCI Index International Shares ETF (ASX: VGS) and Betashares Legg Mason Equity Income Fund (Managed Fund) ETF (ASX: EINC). The ETFs invest in the International shares and Australian shares sectors/industries, respectively.
The Vanguard VGS ETF (ASX:VGS)
The Vanguard VGS ETF provides exposure to listed companies from developed markets around the world, excluding Australia. This ETF is not hedged so it is exposed to currency fluctuations.
According to our most recent data, the VGS ETF had $2624.2 million of money invested. With VGS’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.
To learn more about the VGS ETF, read our free ETF investment report once you’re done with this article.
Betashares EINC ETF (ASX:EINC)
The BetaShares EINC Fund provides investors with an actively managed portfolio of high-yielding Australian companies. Legg Mason Asset Management is the investment manager for this fund.
With our numbers for December 2020, EINC’s FUM stood at $28.32 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 EINC ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.85% for the EINC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $17.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free EINC ETF report by clicking here.