It’s time to run a ruler over Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) ETF (ASX: MICH) and Vanguard Diversified Conservative Index ETF (ASX: VDCO). The ETFs invest in the International shares and Diversified ETF sectors/industries, respectively.
The Magellan MICH ETF (ASX:MICH)
The Magellan MICH Fund is an actively-managed portfolio that invests in a select array of international infrastructure companies. The fund typically selects between 20-40 global equities from the infrastructure sector and hedges its exposure against the Australian dollar to manage currency risks.
According to our most recent data, the MICH ETF had $724.35 million of money invested. With MICH’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 MICH ETF, read our free ETF investment report once you’re done with this article.
Vanguard VDCO ETF (ASX:VDCO)
The Vanguard VDCO ETF provides investors with exposure to a portfolio of other Vanguard funds/ETFs. Meaning, it’s an ETF which invests only in other funds/ETFs — in this case, it only invests in funds managed by its own provider, Vanguard. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.
With our numbers for December 2020, VDCO’s FUM stood at $149.29 million. Since the VDCO’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 VDCO ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.27% for the VDCO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.40.
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 VDCO ETF report by clicking here.