If you’re on the hunt for exposure to the Australian shares sector, it could be worth adding the Vaneck Australian Bank ETF (ASX: MVB) to your ASX watchlist. Let’s take a closer look at this Vaneck ETF.
What is the MVB ETF used for?
The VanEck MVB ETF provides focused exposure to Australia’s largest industry, the banking sector. This is a low-cost way to invest in the Australian banking industry through a single fund.
The MVB ETF could be used by investors looking to invest in Australia’s banking sector. The Australian banking sector currently represents over ⅕ of the Australian equity market by market capitalisation and has historically paid regular, tax-effective dividends to shareholders.
Keep an eye on FUM
The Vaneck MVB ETF had $183.55 million of money invested when we last pulled the monthly numbers. Given MVB’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
Vaneck charges investors a yearly management fee of 0.28% for the MVB ETF. This means that if you invested $2,000 in MVB for a full year, you could expect to pay management fees of around $5.60.
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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the MVB ETF. Before doing anything, take a look at our Vaneck MVB report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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