If you’re on the hunt for exposure to the Fixed interest – International sector, it could be worth adding the Vanguard International Fixed Interest Index (Hedged) ETF (ASX: VIF) to your ASX watchlist. Let’s take a closer look at this Vanguard ETF.
What is the VIF ETF used for?
The Vanguard VIF ETF provides investors with exposure to high-quality securities issued by governments from around the world.
VIF could be used by investors looking to build out the core of a diversified portfolio, or those looking to gain access to international credit markets. It may also be used by investors looking to establish a regular income stream from the ETF’s distributions.
Keep an eye on FUM
The Vanguard VIF ETF had $654.34 million of money invested when we last pulled the monthly numbers. Given VIF’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
Vanguard charges investors a yearly management fee of 0.20% for the VIF ETF. This means that if you invested $2,000 in VIF for a full year, you could expect to pay management fees of around $4.00.
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 VIF ETF. Before doing anything, take a look at our Vanguard VIF report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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