Some things you should know about the VMIN ETF
The Vanguard VMIN Fund is an actively-managed ETF which aims to provide lower volatility than the broader global equity market by investing across many markets and industries.
According to our most recent data, the VMIN ETF had $15.83 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 VMIN ETF? Grab our ETF free investment report.
The BBOZ ETF – a quick look for savvy investors
The BetaShares BBOZ Fund is designed to provide protection from a declining Australian equity market. When the S&P/ASX 200 Accumulation Index falls, BBOZ aims to generate magnified returns for investors.
With our numbers for July 2022, BBOZ’s FUM stood at $270.7 million. Since the BBOZ’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Hedge fund sector should be able to scale well and become profitable for the ETF issuer.
A look at the BBOZ ETF fee load?
BetaShares, the ETF issuer, charges a yearly management fee of 1.38% for the BBOZ ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $27.60.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
The BetaShares BBOZ 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.
