NDIA and VGMF: 2 ASX ETFs to follow

In this article, we’ll try to explain why the ETF Securities Reliance India Nifty 50 ETF (ASX: NDIA) and Vanguard Global Multi-Factor Active ETF (Managed Fund) ETF (ASX: VGMF) are two ASX ETFs worth taking a look at in FY21.

Some things you should know about the NDIA ETF

The ETFS NDIA ETF provides investors with exposure to the performance of shares of the largest companies listed on the Indian stock market, based on market capitalisation.

According to our most recent data, the NDIA ETF had $33.59 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.

Like the look of the NDIA ETF? Grab our ETF free investment report.

The VGMF ETF – a quick look for savvy investors

The Vanguard VGMF Fund is an actively-managed ETF providing investors with exposure to a portfolio of global companies selected using a rules-based, quantitative approach.

With our numbers for December 2021, VGMF’s FUM stood at $44 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 Multifactor sector ETFs, using our full list of ETFs.

A look at the VGMF ETF fee load?

Vanguard, the ETF issuer, charges a yearly management fee of 0.34% for the VGMF ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $6.80.

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.

The Vanguard VGMF 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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