It’s time to run a ruler over Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) and BetaShares Australian Investment Grade Bond ETF (ASX: CRED). The ETFs invest in the Australian shares and Fixed interest – Australia sectors/industries, respectively.
The Vanguard VLC ETF (ASX:VLC)
The Vanguard VLC ETF provides exposure to the MSCI Australian Shares Large Cap Index. This index is a ‘free float-adjusted market capitalization index’ which provides investors with exposure to the largest companies on the ASX.
According to our most recent data, the VLC ETF had $143.36 million of money invested. With VLC’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 Australian 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 VLC ETF, read our free ETF investment report once you’re done with this article.
BetaShares CRED ETF (ASX:CRED)
The BetaShares CRED Fund provides investors with exposure to a portfolio a portfolio of investment-grade, fixed-rate Australian corporate bonds.
With our numbers for October 2021, CRED’s FUM stood at $530 million. Since the CRED’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 CRED ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.25% for the CRED ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.00.
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free CRED ETF report by clicking here.
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