In this article, we’ll try to explain why the Vanguard Global Infrastructure Index ETF (ASX: VBLD) and BetaShares Global Banks ETF – Currency Hedged ETF (ASX: BNKS) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the VBLD ETF
The Vanguard VBLD ETF gives investors exposure to a range of infrastructure securities listed in developed markets around the world. This ETF also provides exposure to currency fluctuations as it is unhedged.
According to our most recent data, the VBLD ETF had $107.97 million of money invested. With VBLD’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.
Like the look of the VBLD ETF? Grab our ETF free investment report.
The BNKS ETF – a quick look for savvy investors
If you’re looking for an ETF made up entirely of global banks (ex-Australia), then BNKS provides a solution. This ETF tracks the Nasdaq Global ex-Australia Banks Hedged AUD Index.
With our numbers for December 2020, BNKS’s FUM stood at $32.12 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the BNKS ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.57% for the BNKS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.40.
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.
The BetaShares BNKS ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.