QUAL and VGAD: 2 ASX ETFs to follow

In this article, we’ll try to explain why the VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL) and Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD) are two ASX ETFs worth taking a look at in FY21.

Some things you should know about the QUAL ETF

The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.

According to our most recent data, the QUAL ETF had $2845.38 million of money invested. With QUAL’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 International shares 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 QUAL ETF? Grab our ETF free investment report.

The VGAD ETF – a quick look for savvy investors

The Vanguard VGAD ETF provides exposure to listed companies from developed markets around the world excluding Australia. This ETF is hedged to Australian dollars to minimise the impact of currency fluctuations.

With our numbers for July 2022, VGAD’s FUM stood at $1763.08 million. Since the VGAD’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 VGAD ETF fee load?

Vanguard, the ETF issuer, charges a yearly management fee of 0.21% for the VGAD ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $4.20.

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 Vanguard VGAD 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.

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