How the VIF ETF could be used in portfolios
The Vanguard VIF ETF provides investors with exposure to high-quality securities issued by governments from around the world.
VIF could be used by investors looking to build out the core of a diversified portfolio, or those looking to gain access to international credit markets. It may also be used by investors looking to establish a regular income stream from the ETF’s distributions.
VIF exceeds our minimum market cap (FUM) criteria
The Vanguard VIF ETF had $638.61 million of money invested when we last pulled the monthly numbers. Given VIF’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
VIF’s fees & costs explained
Vanguard charges investors a yearly management fee of 0.20% for the VIF ETF. This means that if you invested $2,000 in VIF for a full year, you could expect to pay management fees of around $4.00.
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.
Bottom line
This is just a quick overview of the VIF ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the VIF ETF’s Product Disclosure Statement (PDS), available on the Vanguard website, or speak to your financial adviser. For another handy resource, take a look at our Vanguard VIF report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
