On the ASX, the BetaShares Australian Sustainability Leaders ETF (ASX: FAIR) and Vaneck Australian Bank ETF (ASX: MVB) may be worth exploring further in 2022.
What are BetaShares FAIR and Vaneck MVB ETFs used for?
The BetaShares FAIR ETF offers exposure to Australia’s largest stocks and focuses on companies that operate ethically. FAIR has been certified by the Responsible Investment Association Australasia (RIAA), under the Responsible Investment Certification Scheme.
The VanEck MVB ETF provides targeted exposure to Australia’s largest industry, the banking sector. This is an inexpensive way to invest in the Australian banking industry through a single fund.
For more information on the FAIR ETF, see our ASX FAIR review.
We’ll keep it basic and just look at the fees. According to our December 2021 data, the FAIR ETF has a management expense ratio (MER) of 0.49%, while the annual fee of the MVB ETF was 0.28%. Therefore, MVB wins on this one. That said, a more useful metric to know is the fee quartiles that these ETFs fall into (note: quartile 1 is best). For example, any ETF that has fees below 0.3% would be considered in our first (best) quartile.
Back to three years?
As Jerry Maguire said, “show me the money”. Keep in mind that performance isn’t everything and past performance is not indicative of future performance. It is only part of a much larger picture. If we say that performance is not everything, it is because of the volatility of the financial markets and the economy from one year to the next. Some ETFs and funds may generate a positive return one year only to generate lower returns the next time. That’s why we prefer a three or seven year track record to a one year track record. It can smooth temporary performance caused by external factors. Both ETFs met our three-year performance threshold. In December 2021, the FAIR ETF had an average annual return of 15.22%. During the same period, the MVB ETF returned 12.62%.
Okay, one last thing. Let’s talk about the company responsible for the ETF. There are too many factors that go into our internal fund provider ratings to review in this article. The provider behind the FAIR ETF is BetaShares. Betashares ranks highly among our scores for ETF providers and issuers in Australia. We believe BetaShares is one of the leading providers of index and non-index products for retail investors in Australia. Meanwhile, MVB’s supplier is Vaneck. VanEck ranks highly among our scores for ETF providers and issuers in Australia. Our team considers VanEck to be one of Australia’s leading providers of ETFs and specialty funds for retail investors and advisors.
Our takeaway meals
Don’t forget our free opinions on ASX LOUNGE and ASX MVB.
For us, the FAIR ETF ranks rather better for our internal rating methodology, but not by much.
We hope this article has helped you analyze ETFs. Remember that there is a lot more to investing well than what we have just described (risks, diversification, other potentially better ETFs, etc.). Our team of analysts at Rask Australia spend months researching new ASX investments (it’s our daily job!). To make your life easier, you can get the name of the best ETF chosen by our team for 2022 in a free report. Keep reading to find out how to receive our analyst’s report by email now…