Australian and ASX-listed ETFs like the Vanguard VDBA ETF (ASX: VDBA) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Diversified ETF sector. Here’s a quick review of the VDBA ETF.
What does the VDBA ETF do for a diversified portfolio?
The Vanguard VDBA ETF provides investors with exposure to a portfolio of other Vanguard funds. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.
The VDBA ETF might be used by investors who are wanting a simple way to establish a diversified portfolio with balanced weightings. This ETF may suit investors who are looking for both capital growth and a regular income stream.
How big is the Vanguard VDBA ETF?
The Vanguard VDBA ETF had $621.04 million of money invested when we last pulled the monthly numbers. Given VDBA’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 Diversified ETF sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
VDBA ETF fees reviewed
Vanguard charges investors a yearly management fee of 0.27% for the VDBA ETF. This means that if you invested $2,000 in VDBA for a full year, you could expect to pay management fees of around $5.40.
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.
Next steps
Even if you like what you see, before diving straight into buying the VDBA ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Vanguard VDBA report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
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