The Australian ETF industry seems to be growing faster by the day, and one of the ETFs you might have your eye is the Vaneck MSCI Australian Sustainable Equity ETF (ASX: GRNV). In this article, we’ll provide a quick review of the GRNV ETF.
1. Exposure
For a diversified portfolio of sustainable Australian companies, the VanEck GRNV ETF may be of interest. This ETF focuses on Australian companies that have high environmental, social and governance (ESG) performance, based on MSCI ESG Research. GRNV has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
The GRNV ETF could be used by an investor looking to invest in socially responsible Australian companies, and exclude companies that own any fossil fuel reserves or derive revenue from mining thermal coal or from oil and gas-related activities. These companies are likely to grow their profit over time and pay regular tax-effective dividends to their shareholders.
2. Funds under management (FUM)
The Vaneck GRNV ETF had $103.49 million of money invested when we last pulled the monthly numbers. Given GRNV’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Management fees & costs matter
Vaneck charges investors a yearly management fee of 0.35% for the GRNV ETF. This means that if you invested $2,000 in GRNV for a full year, you could expect to pay management fees of around $7.00.
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.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the GRNV ETF. If you’re looking to do some further digging, be sure to read our Vaneck GRNV report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
So how can you actually invest in the GRNV ETF? In the month of March 2022, you can buy the GRNV ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy GRNV for free click here to go to Pearler and sign up (hint: it’s also free to get an account).