VanEck Australian Equal Weight ETF
VanEck Australian Equal Weight ETF (MVW, formerly VanEck Vectors Australian Equal Weight ETF) is an Exchange Traded Fund which gives investors exposure to a diversified portfolio of ASX-listed securities. MVW aims to provide investment returns before fees and other costs which track the performance of the Index.
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What is the VanEck Australian Equal Weight ETF (MVW)?
MVW is an award-winning Australian equity strategy that is a fan-favourite for those considering investing in the S&P/ASX 200.
Often used as a “core” component in investors’ portfolios, MVW gives you exposure to the largest and most liquid companies listed on ASX.
Companies in the MVW ETF are equally weighted which means your investment is spread equally across each stock. This gives you better diversification and less concentration risk compared to investing in the S&P/ASX 200, where around 1 out of every 5 dollars you invest goes to just one sector: the banks.
Which stocks are in the MVW ETF?
As of April 2022, MVW contains 89 holdings of equal or close to equal weight.
By market capitalisation, some of MVW’s largest holdings include Allkem (AKE), Mineral Resources (MIN), Computershare (CPU), AGL Energy (AGL), Qantas Airways (QAN), QBE Insurance Group (QBE), Macquarie Group (MQG), Orica Limited (ORI) and National Australia Bank (NAB).
In terms of sector weightings, MVW is most heavily weighted towards materials (19%) and financials (18.3%), followed by consumer discretionary (11.2%), industrials (11.1%), real estate (10.1%) and communication services (5.6%).
For more information about MVW’s holdings and sector weightings, click here.
Does MVW pay a dividend?
Yes. As of 31 March 2022, MVW ETF pays dividends twice a year with a franking level of 81% and a 12-month distribution yield of 2.87%.
Dividends are usually paid out to MVW owners in January and July.
Is MVW ETF a good buy?
Due to its highly diversified nature, MVW is considered by some investors to be one of the better ASX ETFs.
MVW may be a good investment for investors looking for a quick, easy and cost-effective way to purchase Australia’s most liquid stocks without buying them all individually.
ETFs are usually considered long-term passive investments and MVW ETF is no exception. The fund has a low management cost of 0.35% p.a.
For the 12 months leading up to 31 March 2022, MVW achieved a total return of 14.49%.
How do I buy MVW stock?
Stake offers a quick and easy way to purchase MVW shares – along with 2,000+ other Australian stocks and ASX ETFs – for a brokerage fee of only A$3.
Stake is a CHESS sponsored broker, meaning that when you buy ASX shares, you get a HIN (Holder Identification Number) and stocks are held in your name.
With Stake, you can be in the market in under 5 minutes, whether it's the ASX or Wall St. If you’re interested in building your portfolio by adding MVW, sign up today.
What are the benefits of the MVW ETF?
Find the main benefits of the MVW ETF here:
Equal weighting is backed up by significant empirical research and has historically outperformed traditional market cap indices (e.g. the S&P/ASX 200) over the long term.
Delivers three times more diversification than the S&P/ASX 200, meaning significantly less concentration risk (as measured by the Herfindahl index).
Reduces concentration risk to banks, which face a number of pressures from rising rates and falling property prices impacting bank loan growth and therefore their ability to increase profits.
- Can be deployed to de-risk and diversify with no one security or sector dominating, providing a more balanced exposure to Australia’s economy.
What are the key risks of the VanEck Australian Equal Weight ETF?
An investment in the MVW ETF carries risks associated with financial markets generally, individual company management, industry sectors, fund operations and tracking an index.
Find out more about the VanEck Australian Equal Weight ETF.
To do so follow these steps:
- Sign up in minutes, all you need is some I.D.
- Choose Stake AUS
- Deposit directly into your Stake wallet and you're ready to invest in MVW
This does not constitute financial advice. You should do your own research before making an investment decision. Past performance is not a reliable indication of future performance. No representation is made as to the timeliness, reliability, accuracy or completeness of the market data provided.