Is it time to review the SYI and MVA ETFs?

If you’re looking for the top ETFs this year, the VanEck Vectors Australian Property ETF (ASX: MVA) and the SPDR MSCI Australia Select High Dividend Yield Fund ETF (ASX: SYI) could be worthy of your watchlist.

Why investors study the Vectors Australian Property ETF and MSCI Australia Select High Dividend Yield Fund ETF

The VanEck MVA ETF provides investors with exposure to the Australian property market by investing in a portfolio of ASX-listed property companies and real estate investment trusts (REITs).

The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.

Want to know (lots) more? Read through our full SYI ETF review: see our SYI ETF review now.

a gif of 4 etf reports

Obviously, an easy way to analyse any ETF or fund like SYI or MVA is with quantitative methods, such as studying the fees and past performance (keeping in mind past performance is no guarantee of future performance).

We’ll keep it basic and just study the fees. Based on our data for July 2021, the MVA ETF has a management expense ratio (MER) of 0.35% while the SYI ETF’s yearly fee was 0.35%.So MVA comes out on top. That said, a more useful metric to know is the fee quartiles that these ETFs find themselves in (note: quartile 1 is best). For example, any ETF which has a fee below 0.3% would be considered in our first (best) quartile.

Show me the money

It’s time to study the track record. Keep in mind, performance isn’t everything — and past performance is not indicative of future performance. It’s just one part of a much bigger picture. The reason we say performance is not everything is because of volatility of financial markets and the economy from one year to the next. Some ETFs and funds can put in a compelling return one year just to generate subpar returns the next time around. That’s why we prefer three-year or seven-year track records over one-year track records. It can smooth out the temporary performances caused by external factors. Both ETFs have achieved our three-year performance hurdle. As of July 2021, the MVA ETF had an average annual return of 10.93%. During the same time, the SYI ETF returned 9.91%.

Finally, at Best ETFs Australia, we apply a rating to the ETF issuer or provider. That is, the company that starts and is responsible for operating the ETF on the ASX. There are too many considerations that go into our scoring to detail here. The issuer of MVA is VanEck. VanEck ranks highly for our scores of ETF providers and issuers in Australia. Our team considers VanEck to be one of Australia’s leading providers of specialised ETFs and funds for retail investors and advisers. SYI’s provider is SPDR. SPDR ranks highly for our scores of ETF providers and issuers in Australia. We think SPDR is one of Australia’s top 10 ETF providers for advisers and institutions, and its ETFs on the ASX provide good exposure to particular financial markets for retail investors.

Conclusion

Be sure to visit our free ASX MVA review or ASX SYI ETF review.

For us, the MVA ETF ranks greater for our internal scoring methodology but not by much.

We hope this article helped you analyse ETFs. Don’t forget, there’s a lot more to investing well than what we just outlined (risks, diversification, other potentially better ETFs, etc.). Our analyst team at Rask Australia spends months looking at new ASX investments (it’s our day job!). To make your life easier, you can get the name of our team’s top ETF pick for 2021 in a free report. Keep reading to find out how to get our analyst’s report emailed to you right now…

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