Would a shrewd ASX investor consider the BetaShares BetaShares Global Sustainability Leaders ETF – CH (ASX: HETH) and Vaneck MSCI Australian Sustainable Equity ETF (ASX: GRNV) right about now? These two ASX ETFs invest in the International shares and Australian shares sectors, respectively.
The BetaShares Global Sustainability Leaders ETF – CH (ASX:HETH)
The BetaShares HETH ETF provides investors with a currency-hedged exposure to a diversified portfolio of global companies that fit within the environmental, social and governance (ESG) framework set, along with screening out companies with significant exposure to fossil fuels. HETH has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program. The HETH ETF invests in teh BetaShares ETHI ETF.
According to our most recent data, the HETH ETF had $176.45 million of money invested. With HETH’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 HETH ETF is 0.0062. The issuer, BetaShares, collects this fee automatically.
Meaning, if you invested $2,000 in the HETH ETF for a full year you could expect to pay management fees of around $12.40. 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 HETH 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 HETH ETF. To learn more about it, click through to access our free investment review.
The Vaneck GRNV ETF (ASX:GRNV)
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.
With our numbers for December 2021, GRNV’s FUM stood at $103.49 million. Since the GRNV’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.
A look at the GRNV ETF fee load?
Vaneck, the ETF issuer, charges a yearly management fee of 0.0035 for the GRNV 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 GRNV ETF report (both are very important), take a look at our free investment review.
So how can you actually invest the GRNV 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 GRNV 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 GRNV ETF to take-up this offer. Sounds pretty good, right? To invest in GRNV for $0 brokerage, simply click here to visit Pearler’s website and sign up.
