How ASX investors can use the GRNV ETF
For a diversified portfolio of sustainable Australian companies, the VanEck GRNV ETF may be of interest. This ETF focuses on Australian companies that have high environmental, social and governance (ESG) performance, based on MSCI ESG Research. GRNV has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
The GRNV ETF could be used by an investor looking to invest in socially responsible Australian companies, and exclude companies that own any fossil fuel reserves or derive revenue from mining thermal coal or from oil and gas-related activities. These companies are likely to grow their profit over time and pay regular tax-effective dividends to their shareholders.
The GRNV ETF is yet to reach scale
The Vaneck GRNV ETF had $95.87 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as Vaneck, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
GRNV ETF fees explained
Vaneck charges investors a yearly management fee of 0.35% for the GRNV ETF. This means that if you invested $2,000 in GRNV for a full year, you could expect to pay management fees of around $7.00.
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.
Putting it all together
If you’re weighing up investing in GRNV, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Vaneck GRNV report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
So how can you actually invest in the GRNV ETF? In the month of January 2024, you can buy the GRNV 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 GRNV for free click here to go to Pearler and sign up (hint: it’s also free to get an account).