ETF Shares has announced today that it will list its flagship exchange-traded funds (ETFs) on the Australian Securities Exchange (ASX), aiming to expand accessibility across trading platforms and investment channels.
The three funds – which provide exposure to US companies, the “Magnificent Seven” tech giants and the broader US tech sector – have been exclusively listed on Cboe since May this year.
At the time of the launch, ETF Shares reported that it marked the first time an index ETF provider had chosen the stock exchange as its exclusive listing venue, but it has now opted to switch to the major ASX exchange.
Commenting on the change, Cliff Man, chief executive of ETF Shares, said: “This ASX listing represents an important milestone for ETF Shares and our investors. It ensures our funds are available across virtually every major brokerage and investment platform in Australia. By moving to the ASX, we’re making our ETFs easier to access, trade and include in diversified portfolios – wherever investors choose to invest.”
The Australian Securities and Investments Commission recently approved Cboe Australia’s application to operate as a listing market, allowing it to list new companies and directly compete with the ASX.
Although the move was intended to introduce much-needed competition to the ASX-dominated listings market, ETF Shares is not the only fund manager to have recently transitioned away from the stock exchange.
Speaking to InvestorDaily, head of distribution at Perennial, Cesar Farfan, confirmed that the firm’s Daintree Core Income Active ETF (ASX: DCOR) had previously been listed on Cboe before moving to the ASX.
“The plumbing and the connectivity that Cboe has with brokers and platforms has been growing over time, but it wasn’t quite there, so we just decided to go over to the ASX,” Farfan said.
He added that following the transition, the firm has since seen a lift in fund flows.
While he maintained that Cboe consistently offered excellent support, he noted that connecting with brokers – especially those using older legacy systems – can present challenges to newer competing platforms.
As highlighted by ETF Shares, ASX-listed ETFs are automatically traded on Cboe Australia under Australian exchange rules, but the reverse is not true. This means ASX quotation provides access to a much broader investor base.
Similar to Perennial’s experience, Man added ETF Shares is hopeful ASX connectivity means more Australians will be able to access the firm’s ETFs.
“Investor choice and market access are at the heart of our business. ASX connectivity means more Australians can benefit from our transparent, low-cost ETFs, with improved visibility across advisers, platforms and wealth management systems.”
Commenting on the move, a spokesperson from Cboe emphasised that ETP transfers are a “normal part of global markets”, enabling issuers to make operational changes as their needs evolve, while earning refreshed media coverage and publicity for their funds.
“This development reflects Australia’s rapidly evolving and highly competitive market. Exchange competition here is driving innovation, and we’re beginning to see its benefits locally,” stated Cboe.
The stock exchange noted that it currently has connectivity to 92 per cent of ETF flows, with that number projected to grow to more than 98 per cent by the end of the year.
“With universal connectivity across platforms, we anticipate movement in both directions, consistent with trends in other major markets that are driving innovation and fostering healthy competition,” it stated.
Moreover, Cboe highlighted its leading role in developing fixed income rules, with competitors having since changed theirs to match.
“Cboe ETFs are listed in less than 6 weeks from application – as opposed to the 4-6 month time frame quoted at other exchanges,” it concluded.
The transition from Cboe to ASX quotation is expected to take effect on 14 November, following Cboe’s formal approval of the de-quotation request.
On the new listing, the funds will maintain their operations as Australian-domiciled managed investment schemes, retaining their original investment strategies, structures and Solactive indices.
