the VanEck Video Gaming and eSports ETF (ASX: ESPO) and Betashares Australian Dividend Harvester Fund (Managed Fund) ETF (ASX: HVST) are Exchange Traded Funds (ETFs) that are active in the international equity sector and the Australian equity sector.
How would an investor add ESPO to a portfolio?
The ESPO ETF invests in the world’s largest companies involved in global video game development, eSports, related hardware and software by tracking the performance of the MVIS Global Video Gaming and eSports Index.
According to our latest data, the ESPO ETF had invested $ 101.68 million. With a total fund size from ESPO (FUM) of over $ 100 million, the ETF meets our team’s minimum investment criteria for FUM levels. Typically, our team draws the line at $ 100 million for ETFs in the international equity sector because we believe that reaching this FUM amount, compared to smaller ETFs, reduces the likelihood that the ETF issuer will close the ETF.
Fees to Consider
According to our figures, the annual management fee of the ESPO ETF is 0.55%. The issuer, VanEck, collects this fee automatically.
That is, if you have invested USD 2,000 in the ESPO ETF for a whole year Expect administration fees of around $ 11.00. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.) which is the fee to buy or sell the ETF. In addition to any management fee charged by the issuer, be sure to check the “spread” for the ETF.
A fee comparison
Fees aren’t the only important consideration for ETF investors, but it’s a simple matter. To find out whether the ETF you are looking at is too expensive, compare it to other ETFs from the same sector and to the industry average. For example, the average management fee (MER) across all ETFs funded by the Best ETFs Australia Team was 0.51%, which is $ 10.20 per $ 2,000. Remember, small changes in the fees paid can make a big difference after 10 or 20 years. You should read the ESPO Product Disclosure Statement (PDS) which is available on the ETF issuer’s website as it has the fees, tax implications and the latest information.
The ESPO-ETF could be added to your watchlist. If you’d like to access our full ETF Review, click here for our full report – it’s completely free.
Getting to know the HVST-ETF
With the aim of providing a franked stream of income at least 1.5 times the return of the broader Australian stock market on an annual basis, BetaShares HVST ETF aims to pay investors monthly income. Please note that HVST does not aim to replicate an index.
Using our July 2021 numbers, HVST’s FUM was $ 172.52 million. With the HVST’s FUM over $ 100 million, our investment team would say the ETF lived up to our expectations Minimum criteria for the total amount invested, also called FUM. A very sustainable ETF in the yield / income sector should scale well and become profitable for the ETF issuer.
Are the HVST ETF fees bad?
Betashares, the ETF issuer, charges an annual management fee of 0.90% for the HVST ETF. That is, if you have invested $ 2,000 for a full 12 months Expect a basic administration fee of around $ 18.00.
The administration fee is above the average of all ETFs on our list of ASX ETFs, but keep in mind that the ETF can potentially justify the higher price with superior performance over time.
Choosing through ETFs seems too easy to be true: “Just pick one and put it in your bottom drawer”. However, it’s important to get it right the first time so you don’t end up switching positions (and potentially paying additional taxes). If you’re looking at the HVST ETF, click here to access our analyst’s investment report to make your life a little easier. It’s free.