Market Vectors, the ETF arm of global US-based provider Van Eck Global, listed four purpose-built Australian ETFs on the Australian Securities Exchange (ASX) yesterday.
Two of the ETFs, the Australian Banks ETF and Australian Emerging Resources ETF, will offer access to the Australian banking and small-cap resource sectors via an ASX listed ETF. The other two ETFs to be traded on the ASX are the Australian Property ETF and Australian Resources ETF.
Arian Neiron, managing director at Market Vectors Australia, said many Australian investors remained heavily invested in cash and with interest rates barely above the rate of inflation, investments such as the Australian banks were likely to provide dividend income and capital growth.
“Each ETF is based on a Market Vectors’ purpose-built pure play index, which seeks to provide better liquidity, tradability and diversification while reducing stock concentration issues that are typical of some ETFs based on traditional indices,” he said.
Yesterday also saw Australian ETF provider BetaShares announce five of its exchange traded products on the Praemium SMA platform, providing advisers with exposure to domestic equities strategies, currencies and commodities.
The five funds are the BetaShares FTSE RAFI Australia 200 ETF (QOZ), BetaShares US Dollar ETF (USD), BetaShares Gold Bullion ETF (QAU), BetaShares Australian High Interest Cash ETF (AAA), and the BetaShares Australian Top 20 Equity Yield Maximiser Fund (managed fund) (YMAX).
“Being recognised by Praemium’s independent investment committee for the value that we can provide for their adviser clients is pleasing. Our inclusion on the platform is a great example of the growing acceptance of exchange traded products in adviser practices,” BetaShares managing director Alex Vynokur said.
The week also saw a suite of six ETF model portfolios launched by State Street Global Advisers (SSgA) via OneVue’s Unified Managed Account investment platform.
It will comprise five risk-based models, ranging from high growth to conservative, and a flexible asset allocation model that incorporates a cash-plus approach with a focus on capital preservation when volatility occurs, the companies said in a joint statement.
The models are tailored specifically for OneVue by SSgA, which will advise on the asset allocation for the models and regularly review the strategic allocation to ensure alignment to the stated objectives, while dynamically shifting allocations in response to market events, the companies said.
“In the near future, these models will also become available on OneVue’s wealth management portal for organisations that cater to the self-directed market and will be an easy way for investors to diversify their portfolio in a flexible, tax-effective and low-cost manner,” OneVue head of partner solutions Brett Marsh said.
“We recognise that the adoption of ETFs continues to increase both in the advice and self-directed sectors, with the exchange traded product market reaching a record $8.8 billion in assets, according to the latest ASX Funds Monthly Update,” he added.
