On the ASX, the Vanguard Diversified High Growth Index ETF (ASX: VDHG) and Betashares S&P/ASX Australian Technology ETF (ASX: ATEC) might be worth digging into in 2021.
What to know about the Vanguard VDHG ETF
The Vanguard VDHG ETF provides investors with exposure to a portfolio of other Vanguard funds. Meaning, since the VDHG ETF invests in other shares, bond or cash ETFs, it gives you exposure to multiple asset classes with a single investment. In this way, VDHG is designed to be a diversified portfolio by itself.
According to our most recent data, the VDHG ETF had $1460.73 million of money invested. With VDHG’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 Diversified ETF 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 VDHG ETF. Click here to access our free ETF review.
The Betashares ATEC ETF – key points
The BetaShares ATEC ETF provides exposure to the top Australian technology companies that are listed on the ASX. This is a low-cost way to access the Australian technology sector through a single fund.
With our numbers for October 2021, ATEC’s FUM stood at $218 million. Since the ATEC’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 ATEC ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.48% for the ATEC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.60.
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 ATEC 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 ATEC.
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