MVW
2026 aug
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Chart
one can extrapolate that it doubled in roughly 11 years.
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The VanEck Australian Equal Weight ETF (ASX: MVW) is an exchange-traded fund launched in March 2014 that tracks the MVIS Australia Equal Weight Index. Unlike standard index funds heavily weighted toward mega-caps like banks and miners, MVW holds over 60 large and liquid ASX stocks in equal proportions, charging a management fee of 0.35% p.a. [1, 2, 3, 4, 5]
Key Features
- Equal Weighting Strategy: Every company in the fund accounts for roughly the same percentage (around 1.4% to 1.6%) of the portfolio.
- Reduced Concentration Risk: Limits heavy exposure to top-heavy sectors like the big four Australian banks or BHP and Rio Tinto.
- Mid-Cap Tilt: Provides more balance toward mid-sized and growing companies compared to standard market-capitalisation weighted funds (like the ASX 200).
Fund Profile
- Inception Date: March 4, 2014
- Management Cost: 0.35% per year
- Asset Class: Australian Equities
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While there is no dedicated pure-play small-cap-only equal-weighted ETF on the ASX, the closest and most popular equivalent is the VanEck Australian Equal Weight ETF (ASX: MVW), which mixes large, mid, and small caps to naturally tilt exposure away from giant mega-cap stocks.
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ARGO vs MVW - buffett style
Comparing Argo Investments (ASX:ARG) and the VanEck Australian Equal Weight ETF (ASX:MVW) through a long-term, Warren Buffett-style lens reveals a choice between a classic conservative Listed Investment Company (LIC) focused on smooth dividends and a smart-beta ETF engineered to beat market concentration. [1, 2]
Quick Comparison Table
| Metric | Argo Investments (ASX:ARG) | VanEck Equal Weight ETF (ASX:MVW) |
|---|---|---|
| Structure | Listed Investment Company (LIC) | Exchange Traded Fund (ETF) |
| Strategy / Index | Internal bottom-up blue-chip stock picking | MVIS Australia Equal Weight Index |
| 10-Year Return (Total) | ~9.0% p.a. (in line with ASX 300 accumulation) | ~76.6% total return (~61%–76% depending on exact start window, beating cap-weighting) |
| P/E Ratio (Approx.) | ~27.1x–27.5x (trailing) | Varies by underlying holdings (~15x–18x typical value-core mix) |
| Management / MER | ~0.14% (low internal cost via company structure) | 0.35% p.a. |
| Dividend Yield | ~4.18% (100% Fully Franked) | ~3.44% – 3.86% (Partially/Fully franked mix of underlying top stocks) |
| Dividend Growth | Slow & steady (~2.7% p.a., smoothed via profit reserves) | Lumpy / variable distribution growth tracking underlying turnover/equal-weight rebalancing |
1. Long-Term 10-Year Growth
- ARG: Historically tracks the broader large-cap Australian market closely because its portfolio mirrors traditional blue chips (heavy in big banks and major miners). Over a 10-year span, its total shareholder return (including dividends) has hovered around 8.5% to 9.0% annualized, closely matching the S&P/ASX 300 Accumulation Index. [1]
- MVW: Employs an equal-weight methodology across ~72 large and mid-cap ASX stocks, quarterly resetting weights back to equal proportions. This forces a continuous "buy low, sell high" discipline—selling outperforming giants and buying beaten-down mid-caps. Over the long run, this structural mechanism has frequently outperformed standard market-cap indexes (like the ASX 200) by avoiding extreme banking/mining concentration. [1, 2, 3]
2. Price-to-Earnings (P/E)
- ARG: Trades at a trailing P/E of roughly 27.1x to 27.5x, which reflects its mature, high-quality large-cap holdings. Crucially for value investors, ARG frequently trades at a discount to its Net Tangible Assets (NTA)—sometimes widening out to historical discounts near 15%–16%, meaning you are buying dollar-worths of assets for roughly 84 cents. [1, 2, 3]
- MVW: Because it holds an equal proportion of mid-caps and smaller large-caps alongside the top tier, its aggregate P/E is generally lower or more diversified away from the stretched multiples of the top 5 mega-cap companies on the ASX.
3. Dividends & Dividend Growth
- ARG (The Dividend Stalwart): Argo has paid uninterrupted dividends since 1946 and franked every dividend since 1995. Buffett values economic moats and shareholder reliability; ARG uses a unique corporate profit reserve structure to stockpile earnings in good years so it can smooth out and maintain dividend payouts during market downturns. Its raw dividend growth is modest (~2.7% annualized over 10 years), prioritizing safety and 100% franking stability over aggressive payout expansion. [1, 2, 3]
- MVW (The Equal-Weight Cash Flow): Distributions fluctuate more directly depending on the realized dividends and capital gains churned out during quarterly equal-weight rebalances. While its trailing yield sits lower (~3.4%–3.8%), its equal-weight tilt into cash-generative industrial and mid-cap sectors has historically delivered strong multi-year distribution growth patterns when smaller companies scale up. [1, 2, 3, 4, 5]
A Warren Buffett-Style Verdict
- Argo Investments (ARG) appeals more to the classic Buffett/Graham mindset of buying dollars for 84 cents. Buffett appreciates an operator with rock-solid balance sheet integrity, ultra-low internal costs (0.14%), an unbroken 80+ year dividend track record, and the ability to buy the LIC at a wide discount to its underlying NTA. It is built for a permanent "ownership mentality" of living off stable, fully franked cash flow. [1, 2]
- The VanEck Equal Weight ETF (MVW) appeals to a quantitative Buffett approach—removing human emotional bias via a structural rulebook. Instead of letting market caps get bloated by a handful of over-concentrated banks, MVW relies on mathematical rebalancing to relentlessly recycle capital into cheaper parts of the domestic economy. It trades away some dividend consistency for superior structural indexing growth.
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