IHCB and MVR: 2 ASX ETFs to follow

In this article, we’ll try to explain why the iShares Core Global Corporate Bond (AUD Hedged) ETF (ASX: IHCB) and Vaneck Australian Resources ETF (ASX: MVR) are two ASX ETFs worth taking a look at in FY21.

Some things you should know about the IHCB ETF

The iShares IHCB ETF provides investors with access to the performance of investment-grade corporate bonds across global markets and sectors, hedged into Australian dollars. This is a relatively low-cost way to get exposure to global investment-grade corporate bonds in a single fund.

According to our most recent data, the IHCB ETF had $310.85 million of money invested. With IHCB’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws 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 lowers the chance that the ETF issuer will close the ETF.

Like the look of the IHCB ETF? Grab our ETF free investment report.

The MVR ETF – a quick look for savvy investors

The VanEck MVR ETF provides focused exposure to the Australian resources sector, which is a significant part of the Australian economy. This is a low-cost way to invest in the Australian resources industry through a single fund.

With our numbers for July 2022, MVR’s FUM stood at $238.5 million. Since the MVR’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 Index sector should be able to scale well and become profitable for the ETF issuer.

A look at the MVR ETF fee load?

Vaneck, the ETF issuer, charges a yearly management fee of 0.35% for the MVR ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $7.00.

This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.

The Vaneck MVR 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.

So how can you actually invest the MVR ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Jan 2024, with your free Pearler account you can buy the MVR ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.

You can invest as little as $500 in the MVR ETF to take-up this offer. Sounds pretty good, right? To invest in MVR for $0 brokerage, simply click here to visit Pearler’s website and sign up.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report, and 24/7 access to the Rask community, for FREE by CLICKING HERE NOW or the button below.

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