On the ASX, the iShares S&P Europe ETF (ASX: IEU) and VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL) might be worth digging into in 2021.
What to know about the iShares IEU ETF
The iShares IEU ETF provides investors with a broad exposure to leading European companies. This is a low-cost way to access a variety of European companies through a single fund.
According to our most recent data, the IEU ETF had $549.13 million of money invested. With IEU’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.
Keep learning about the IEU ETF. Click here to access our free ETF review.
The VanEck QUAL ETF – key points
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.
With our numbers for December 2020, QUAL’s FUM stood at $1525.38 million. Since the QUAL’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 Quality factor sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the QUAL ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.40% for the QUAL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.00.
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.
Before rushing out and investing in the QUAL fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on QUAL.
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