Would a shrewd ASX investor consider the Vanguard US Total Market Shares Index ETF (ASX: VTS) and ETF Securities EURO STOXX 50 ETF (ASX: ESTX) right about now? These two ASX ETFs provide exposure to the International shares sector, and aim to make investing in it as convenient as possible.
The Vanguard VTS ETF (ASX:VTS)
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.
According to our most recent data, the VTS ETF had $3219.77 million of money invested. With VTS’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.
Fees to consider
According to our numbers, the annual management fee on the VTS ETF is 0.0003. The issuer, Vanguard, collects this fee automatically.
Meaning, if you invested $2,000 in the VTS ETF for a full year you could expect to pay management fees of around $0.60. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.51%, which is $10.20 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the VTS Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
These are high level ideas or basics of the VTS ETF. To learn more about it, click through to access our free investment review.
The ETF Securities ESTX ETF (ASX:ESTX)
The ETFS ESTX ETF provides investors with exposure to 50 blue-chip companies from 12 eurozone countries; namely Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
With our numbers for December 2021, ESTX’s FUM stood at $73.4 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
A look at the ESTX ETF fee load?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.0035 for the ESTX ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $7.00.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
Before you read the Product Disclosure Statement (PDS) or speak to your financial adviser about the ESTX ETF report (both are very important), take a look at our free investment review.
So how can you actually invest the ESTX ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Jun 2022, with your free Pearler account you can buy the ESTX ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the ESTX ETF to take-up this offer. Sounds pretty good, right? To invest in ESTX for $0 brokerage, simply click here to visit Pearler’s website and sign up.