What does the VAP ETF do for a diversified portfolio?
The Vanguard VAP ETF provides investors with low-cost exposure to listed Australian property companies and real estate investment trusts (REITs).
The VAP ETF could be used to gain exposure to the Australian property market without the prohibitive costs of actually purchasing property. It could also be used as a tactical position to diversify an existing equity portfolio and generate a regular income stream.
How big is the Vanguard VAP ETF?
The Vanguard VAP ETF had $2283.54 million of money invested when we last pulled the monthly numbers. Given VAP’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.
VAP ETF fees reviewed
Vanguard charges investors a yearly management fee of 0.23% for the VAP ETF. This means that if you invested $2,000 in VAP for a full year, you could expect to pay management fees of around $4.60.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 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 VAP ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Vanguard VAP 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.