What does the MVB ETF do for a diversified portfolio?
The VanEck MVB ETF provides focused exposure to Australia’s largest industry, the banking sector. This is a low-cost way to invest in the Australian banking industry through a single fund.
The MVB ETF could be used by investors looking to invest in Australia’s banking sector. The Australian banking sector currently represents over ⅕ of the Australian equity market by market capitalisation and has historically paid regular, tax-effective dividends to shareholders.
How big is the Vaneck MVB ETF?
The Vaneck MVB ETF had $201.32 million of money invested when we last pulled the monthly numbers. Given MVB’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
MVB ETF fees reviewed
Vaneck charges investors a yearly management fee of 0.28% for the MVB ETF. This means that if you invested $2,000 in MVB for a full year, you could expect to pay management fees of around $5.60.
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
Even if you like what you see, before diving straight into buying the MVB ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Vaneck MVB report for a more comprehensive overview of this ETF. While you’re on our website, 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.
So how can you actually invest in the MVB ETF? In the month of August 2023, you can buy the MVB 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 MVB for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
