It is not an uncommon event for the ASX stock market to welcome new exchange-traded funds (ETFs) to its boards. Heck, one seems to make its public markets debut every other month. This April is no different, with Australian investors, as of today, having three new choices to pick between if they are on the hunt for their next ASX ETF.
Earlier this week, my Fool colleague heralded the launch of these three new funds in question. They are all from ETF provider VanEck.
VanEck is a well-known name amongst the ETF investor community. Some of this provider's most popular offerings include the VanEck Morningstar Wide Moat ETF (ASX: MOAT), the VanEck International Quality ETF (ASX: QUAL), and the VanEck Australian Equal Weight ETF (ASX: MVW).
Today, these products have three new stablemates.
They are:
- VanEck Core+ Diversified Balanced Active ETF (ASX: VBAL)
- VanEck Core+ Diversified Growth Active ETF (ASX: VGRO)
- VanEck Core+ Diversified High Growth Active ETF (ASX: VHGR)
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What's new with these ASX ETFs?
As you might guess, all three of these new ETFs are in a family. All three offer investors a diversified portfolio of underlying ETFs – a 'ETF of ETFs' model that has grown in popularity in recent years. The underlying ETFs are all VanEck products too, and aim to give investors a specific exposure to different asset classes, depending on their desired risk level.
To illustrate, both the VanEck Core+ Diversified Balanced Active ETF and the VanEck Core+ Diversified High Growth Active ETF both hold stakes in the Australian Equal Weight ETF we touched on earlier.
VBAL's portfolio allocates about 17% of its portfolio to this ETF, while the higher-growth VHGR product ramps this up to about 35%. In lieu of additional exposure to ASX shares, VBAL instead opts to employ a higher use of bonds and fixed-interest investments to reduce its risk level to investors.
So VanEck is clearly trying to offer something for everyone here. It's a similar product offering to that of VanEck's fellow ETF providers like BetaShares and Vanguard. These two providers also offer 'ETFs of ETFs'. They include the BetaShares Diversified All Growth ETF (ASX: DHHF) and the Vanguard Diversified Conservative Index ETF (ASX: VDCO).
All three of these new VanEck ETFs floated at $20 a unit today. At the time of writing, all three have taken a slight dip, reflecting today's market-wide drop, no doubt. Let's see how these funds fare going forward.
VBAL, VGRO, and VHGR all charge management fees of 0.39% per annum. That's $39 per year for every $10,000 invested.
