It’s time to run a ruler over BetaShares Crude Oil Index ETF-Currency Hedged (Synthetic) ETF (ASX: OOO) and Vanguard Diversified Balanced Index ETF (ASX: VDBA). The ETFs invest in the Commodities and Diversified ETF sectors/industries, respectively.
The BetaShares OOO ETF (ASX:OOO)
The BetaShares OOO ETF provides investors with exposure to crude oil futures, hedged into Australian dollars.
According to our most recent data, the OOO ETF had $207.84 million of money invested. With OOO’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 Commodities 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 OOO ETF, read our free ETF investment report once you’re done with this article.
Vanguard VDBA ETF (ASX:VDBA)
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.
With our numbers for December 2021, VDBA’s FUM stood at $621.04 million. Since the VDBA’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 VDBA ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.27% for the VDBA ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.40.
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 VDBA ETF report by clicking here.
[ls_content_block id=”4954″ para=”paragraphs”]