I’m always on the lookout for exchange-traded funds (ETFs) that could be useful for my portfolio or ones that could be interesting for readers.
ETFs are a great way to invest because it allows us to buy a large basket of shares for a low annual management fee cost.
Vanguard is great because it’s run for the benefit of members, which are the investors. It shares the ‘profit’ it makes by giving its investors a very low management fee.
Some of Vanguard’s other ETFs could also be options to consider for your portfolio:
Vanguard Australian Property Securities Index ETF (ASX: VAP)
If you want to invest in commercial property on the ASX but you’re not sure which real estate investment trusts (REITs) you want to pick then it could be a good idea to invest in a property ETF.
This one looks to track the S&P/ASX 300 ETF A-REIT index and has a management fee of only 0.23% per annum. It has been a solid performer, over the last five years it has delivered an average return per annum of 13.5%.
It currently offers a 4.4% distribution yield and its top five holdings are Goodman Group (ASX: GMG), Scentre Group (ASX: SCG), DEXUS Property Group (ASX: DXS), Mirvac Group (ASX: MGR) and GPT Group (ASX: GPT).
Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)
Before you get too excited about the idea of investing in small caps with this ETF, the median market cap of this ETF is $2.7 billion, so it doesn’t exactly mean small by ASX standards.
However, it does have a much lower annual management fee charge compared to small cap ASX fund managers, it’s currently 0.3% per annum.
Over the past five years the ETF has generated a decent return of 8.3% per annum.
Both of these ETFs are interesting ideas in my opinion, although at the current prices I think the Vanguard Small Companies ETF could be better because of how much the Property ETF’s holdings have gone up in value beyond its underlying valuation over the past year or two.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.