How the IFRA ETF fits into an ASX portfolio
The VanEck IFRA ETF provides investors with exposure to a portfolio of infrastructure securities from developed markets around the world.
The IFRA ETF could be used by investors who are seeking to diversify their portfolio and gain exposure to infrastructure assets, or those who are looking for income from ETFs which provide regular disctributions.
IFRA meets our minimum level for FUM
The VanEck IFRA ETF had $713.56 million of money invested when we last pulled the monthly numbers. Given IFRA’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
VanEck charges investors a yearly management fee of 0.52% for the IFRA ETF. This means that if you invested $2,000 in IFRA for a full year, you could expect to pay management fees of around $10.40.
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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our VanEck IFRA report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
So how can you actually invest in the IFRA ETF? In the month of July 2023, you can buy the IFRA 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 IFRA for free click here to go to Pearler and sign up (hint: it’s also free to get an account).