ETF Analysis MVB and ISO
MVB – VanEck Vectors Australian Banks ETF
ISO – iShares S&P/ASX Small Ordinaries ETF
MVB could be a good way to get involved into the financial sector without having to choose anyone of a number of under performing banks at the moment. In the wake of the Royal Commission into the sector, we see some potential on the horizon as, after all, they are banks and money making machines. But considering the spotlight that they are under, picking one or two for growth may be difficult so the ETF MVB may be a suitable alternative.
Index Description : MVB is an ETF (Exchange Traded Fund) that invests in a diversified portfolio of ASX-listed securities with the aim of providing investment returns (before management costs) that closely track the returns of the MVIS Australia Banks Index. Holdings as at the 28/5/18 are ANZ, WBC, CBA, NAB, MQG, BEN and BOQ.
ISO has been doing well lately as traders look towards the small end of the ASX for performance and growth. Price action has been doing well holding higher lows and higher highs as a longer term trend plays out off major support around 3.45 from the start of 2016. Price may be getting a little extended so we expect to see a reaction lower where we would be looking for another higher low to establish itself to support price.
Index Description : The fund aims to provide investors with the performance of an index, before fees and expenses, composed of small capitalisation Australian securities listed on the ASX. The index is comprised of companies included in the S&P/ASX 300 index, but not in the S&P/ASX 100 index, and accounts for approximately 7% of the market capitalisation of ASX listed equities. Top 10 Holdings as at 28/5/18 WHC, MTS, WOR, BPT, MIN, SGM, NHF, NXT, SBM and ALU.
Website : https://www.blackrock.com/ISO