If you’re on the hunt for exposure to the International shares sector, it could be worth adding the VanEck Vectors FTSE International Property (Hedged) ETF (ASX: REIT) to your ASX watchlist. Let’s take a closer look at this VanEck ETF.
What is the REIT ETF used for?
The VanEck Vectors FTSE International Property (Hedged) ETF gives investors exposure to developed international property markets outside of Australia.
The REIT ETF may be used by investors who want to diversify their portfolio by gaining exposure to international property markets, or by those who are looking for income from regular distributions.
Keep an eye on FUM
The VanEck REIT ETF had $119.82 million of money invested when we last pulled the monthly numbers. Given REIT’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.
Fees and costs for investors
VanEck charges investors a yearly management fee of 0.43% for the REIT ETF. This means that if you invested $2,000 in REIT for a full year, you could expect to pay management fees of around $8.60.
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 REIT ETF. Before doing anything, take a look at our VanEck REIT report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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