You might be sitting back and considering the VanEck Vectors FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA) and thinking that November could be as good of a time as any to take closer look. Here’s how we would start our research.
Find out what the ETF does
The VanEck IFRA ETF provides investors with exposure to a portfolio of infrastructure securities from developed markets around the world.
The IFRA ETF could be used by investors who are seeking to diversify their portfolio and gain exposure to infrastructure assets, or those who are looking for income from ETFs which provide regular disctributions.
IFRA’s FUM meets our hurdle
The VanEck IFRA ETF had $534.03 million of money invested when we last pulled the monthly numbers. Given IFRA’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
Pay attention to yearly costs & fees
VanEck charges investors a yearly management fee of 0.52% for the IFRA ETF. This means that if you invested $2,000 in IFRA for a full year, you could expect to pay management fees of around $10.40.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
If you’re thinking about investing in IFRA, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free VanEck IFRA report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.