Why to invest in ETFs? 5 Popular ETFs – A200, IOZ, MVW, VGS, VEU

  • Dec 01, 2019 AEDT
  • Team Kalkine
Why to invest in ETFs? 5 Popular ETFs – A200, IOZ, MVW, VGS, VEU

An Exchange Traded Fund (ETF) is an investment fund traded on stock exchanges similar to stocks. With stock-like and mutual fund like features, tax efficiency and low costs, ETF is an attractive asset class. Five important ETFs traded in the Australian Stock Exchanges are Betashares Australia 200 ETF (ASX: A200), IShares Core S&P/ASX 200 ETF (ASX: IOZ), VanEck Vectors Australian Equal Weight ETF (ASX: MVW), Vanguard MSCI Index International Shares ETF (ASX: VGS) and Vanguard All-World Ex-US Shares Index ETF (ASX: VEU).

ETFs 5 Years Performance (Source: Thomson Reuters)

Betashares Australia 200 ETF (ASX: A200)

Betashares Australia 200 ETF (ASX: A200) is managed by BetaShares with an aim to provide intelligent investment solutions helping Australian investors in meeting their financial objectives. Fund’s September 2019 final distribution amount stood at 136.831129 cents per unit. Estimated breakdown for Net cash distribution are as follows:

Under Australian Income, 0.24% was for interest, 3.92% for other income, 86.73% for franked dividends, 3.77% for unfranked dividends and 3.95% for conduit foreign income. Under foreign income, 1.32% was for foreign sourced income. Under non-assessable amounts, 0.07% was for other non-attributable amount. Franking credits under non-cash items stood at 50.494069 cents per unit.

On the stock information front

On November 29, 2019, A200 settled the day’s trade at $115.120 down by 0.26%. Its 52 weeks high and 52 weeks low value stand at $115.990 and $90.600, respectively, with an annual average daily volume of 26,726. It has generated an absolute return of 20.46% for the last one year, 5.84% for the last six months, and 5.52% for the last three months.

IShares Core S&P/ASX 200 ETF (ASX: IOZ)

IShares Core S&P/ASX 200 ETF (ASX: IOZ) is managed by BlackRock Investment Management (Australia) Limited. It aims to provide investors with the performance of an index, before fees and expenses. It measures the performance of the 200 largest Australian securities listed on the ASX (benchmark index – S&P/ASX 200 Total Return Index). Other than exposure to Australian equity securities that form the index, the fund holds small allocation of cash for cash flow management purposes.

Fund’s September 2019 final distribution amount stood at 36.847987 cents per unit, with record date and payment date on October 11, 2019 and October 22, 2019, respectively. Estimated breakdown for Net cash distribution are as follows:

Under Australian Income, 0.3573% was for interest (subject to non-resident withholding tax), 1.0695% for other income, 84.6636% for franked dividends (net), 7.1957% for unfranked dividends and 3.4650% for unfranked dividends (CFI). Under foreign income, 2.6332% was for foreign income (net). Under non-assessable income, 0.6157% was for other non-assessable amounts.

As per non-cash distribution components, estimates for franking credits gross-up and foreign withholding tax gross-up are 13.539483 cents per share and 0.050357 cps, respectively. Estimated gross distribution stands at 50.437827 cents per share.

On the stock information front

On November 29, 2019, IOZ settled the day’s trade at $28.040 down 0.284%, with the market capitalization of $1.69 Bn. Its 52 weeks high and 52 weeks low value stand at $28.230 and $22.320, respectively. It has generated an absolute return of 17.96% for the last one year, 5.65% for the last six months and 5.06% for the last three months.

VanEck Vectors Australian Equal Weight ETF (ASX: MVW)

VanEck Vectors Australian Equal Weight ETF (ASX: MVW) is managed by VanEck Investments Limited, which invests in the largest and most liquid ASX-listed companies all equally weighted with diversification across both securities and sectors in accordance with the provisions of the fund’s constitution and PDS. Moreover, MVW tracks the performance of the MVIS Australia Equal Weight index and has its maximum exposure in those securities that are constituents of the particular index.

Other funds (ETFs) handled by VanEck Investments Limited are VanEck Vectors Australian Property ETF, VanEck Vectors S&P/ASX Franked Dividend ETF (renamed as VanEck Vectors MSCI Australian Sustainable Equity ETF), VanEck Vectors S&P/ASX MidCap ETF, VanEck Vectors Australian Banks ETF, VanEck Vectors Australian Resources ETF, VanEck Vectors Australian Resources ETF and VanEck Vectors Small Companies Masters ETF.

VanEck Vectors MSCI Australian Sustainable Equity ETF aims to track the performance of the MSCI Australia IMI Select SRI Screened Index (with net dividends reinvested) in Australian dollars, before taking into account fees, expenses and tax, and has maximum of its investments in those Australian listed equities which paid out fully franked dividends in the past two years.

VanEck Vectors Australian Property ETF aims to track MVIS Australian A-REITs Index (with net dividends reinvested) performance, with maximum of its exposure in the largest and most liquid Australian Real Estate Investment Trusts (A-REITS) securities including commercial, industrial, retail and residential property segments.

VanEck Vectors Australian Banks ETF aims to track the performance of the MVIS Australia Banks index. It has maximum exposure in the most liquid and largest ASX-listed banks that produce revenues from the Australian banking sector.

VanEck Vectors S&P/ASX MidCap ETF aims to track the performance of the S&P/ASX MidCap 50 Index with its maximum exposure in Australian listed equity securities and listed unit trusts to capture the performance of the market capitalisation ranking of 51-100 MidCap ASX-listed companies.

VanEck Vectors Australian Resources ETF aims to track the performance of the MVIS Australian Resources Index with its maximum exposure in the largest and most liquid ASX-listed companies that generate revenues from the Australian resources sector.

VanEck Vectors Small Companies Masters ETF aims to track the performance of the MVIS Australian Small-Cap Dividend Players Index with its maximum exposure in the most liquid small-cap ASX-listed companies that generate revenues in Australia while not omitting their latest dividend payment.

On the stock information front

On November 29, 2019, MVW settled the day’s trade at $33.260 up 2.908%, with the market capitalization of $1.06 Bn. Its 52 weeks high and 52 weeks low value stand at $33.260 and $25.300, respectively. It has generated an absolute return of 22.46% for the last one year, 10.72% for the last six months and 10.21% for the last three months.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Vanguard MSCI Index International Shares ETF (ASX: VGS) is managed by Vanguard Investments Australia Ltd. Fund’s September 2019 final distribution amount stood at 36.9838 cents per unit, with record date and payment date on October 2, 2019 and October 16, 2019, respectively. Estimated breakdown for Net cash distribution are as follows:

Under Australian Income, 0.05% was for interest (subject to non-resident withholding tax) and 1.39% for other income.

Under capital gains, 10.53% was for discounted capital gain NTARP and 10.53% for CGT concession amount. Under Foreign Income, 77.50% was for assessable foreign source income.

Foreign Income tax offset stood at 3.12178 cents per share.

On the stock information front

On November 28, 2019, VGS settled the day’s trade at $82.050 down 0.219%, with the market capitalization of $2.06 Bn. Its 52 weeks high and 52 weeks low value stand at $82.470 and $62.820, respectively. It has generated an absolute return of 20.91% for the last one year, 12.57% for the last six months and 8.27% for the last three months.

Vanguard All-World Ex-US Shares Index ETF (ASX: VEU)

Vanguard All-World Ex-US Shares Index ETF (ASX: VEU) is managed by Vanguard Investments Australia Ltd. On September 23, 2019, distribution amount for CHESS Depositary Interest (CDI) holders stood at US$0.3273, with record date and payment date on September 26, 2019 and October 23, 2019, respectively.

On the stock information front

On November 29, 2019, VEU settled the day’s trade at $77.140 down 0.631%, with the market capitalization of $1.61 Bn. Its 52 weeks high and 52 weeks low value stand at $77.990 and $63.070, respectively. It has generated an absolute return of 15.84% for the last one year, 8.89% for the last six months and 7.89% for the last three months.


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