In this article, we’ll try to explain why the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) and Vanguard US Total Market Shares Index ETF (ASX: VTS) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the RBTZ ETF
The BetaShares RBTZ ETF provides investors with exposure to leading global companies involved in the production and utilisation of robotics and artificial intelligence – a rising global trend.
According to our most recent data, the RBTZ ETF had $222.47 million of money invested. With RBTZ’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 International shares 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.
Like the look of the RBTZ ETF? Grab our ETF free investment report.
The VTS ETF – a quick look for savvy investors
The Vanguard VTS ETF provides investors with broad, diversified exposure to the US market. The ETF is not hedged, meaning investors are also exposed to exchange rate fluctuations.
With our numbers for December 2021, VTS’s FUM stood at $3219.77 million. Since the VTS’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 VTS ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.03% for the VTS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $0.60.
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.
The Vanguard VTS ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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