On the ASX, the VanEck Vectors Australian Real Estate ETF (ASX: MVA) and SPDR S&P/ASX 200 Listed Real Estate Fund ETF (ASX:SLF) might be worth investigating in 2022.
What are the VanEck MVA and SPDR SLF ETFs used for?
The VanEck MVA ETF provides investors with exposure to the Australian real estate market by investing in a portfolio of real estate companies and real estate investment trusts (REITs) listed on the ASX.
The SLF ETF by SPDR invests in shares/securities of listed real estate investment trusts (REITs). Investors can use these real estate-focused ETFs to gain exposure to a wide range of real estate-exposed trusts and companies, including office space, commercial rental space, and construction projects.
For more information on the MVA ETF, see our ASX MVA review.
We’ll keep it simple and look at the fees. Based on our December 2021 data, the MVA ETF has a management expense ratio (MER) of 0.35%, while the FSL ETF’s annual fee was 0.40%. The MVA therefore comes first. 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.
How do they work?
Performance matters. 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 can generate a strong return one year only to generate insufficient 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 MVA ETF had an average annual return of 12.24%. Over the same period, the FSL ETF returned 12.34%.
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 MVA ETF 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. Meanwhile, the SLF provider is SPDR. SPDR ranks highly among our scores for ETF providers and issuers in Australia. We believe SPDR is one of Australia’s top 10 ETF providers for advisers and institutions, and its ASX ETFs provide good exposure to particular financial markets for retail investors.
Our takeaway meals
Did you know we have free reports? See our ASX MVA Review and ASX SLF Review today.
For us, the FNS FSL scores positive against our internal rating methodology, but only just barely.
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…