It’s time to run a ruler over VanEck Vectors Emerging Income Opportunities Active ETF (Managed Fund) ETF (ASX: EBND) and iShares S&P 500 ETF (ASX: IVV). The ETFs invest in the Fixed interest – International and International shares sectors/industries, respectively.
The VanEck EBND ETF (ASX:EBND)
The VanEck EBND ETF is an actively-managed ETF which provides investors with exposure to a portfolio of bonds and currencies from a range of emerging markets.
According to our most recent data, the EBND ETF had $41.75 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the EBND ETF, read our free ETF investment report once you’re done with this article.
iShares IVV ETF (ASX:IVV)
The iShares IVV ETF provides investors with exposure to the largest 500 US stocks, by market capitalisation. This is a low-cost way to access leading US companies through a single fund.
With our numbers for December 2020, IVV’s FUM stood at $3571.5 million. Since the IVV’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 IVV ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.04% for the IVV ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $0.80.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free IVV ETF report by clicking here.