Vaneck MVS ETF (ASX:MVS)
The VanEck MVS ETF provides exposure to a diversified portfolio of Australian small caps, with a focus on highly liquid, dividend-paying companies. This ETF tracks the MVIS Australia Small-Cap Dividend Payers Index.
What does the MVS invest in?
MVS invests in Australian small caps that currently pay a dividend. Some of the reasons VanEck gives for filtering companies by their ability to pay dividends include an indication that the company is profitable, has a disciplined management team and has a robust balance sheet with strong cash flows. ETFs are an effective way to invest in an entire sector or index through a single trade.
What do investors use MVS for?
The MVS ETF could be used by investors looking to invest in Australian small caps, with a focus on stocks that are paying dividends and have high levels of liquidity. Navigating away from the largest ASX companies removes a lot of the exposure to the financials sector and could diversify your Australian portfolio allocation.
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