High-yield ETF delivers near 12% in volatile 2015

High-yield ETF delivers near 12% in volatile 2015

An exchange-traded fund (ETF) focused on high yield within the US share market has returned 11.94 per cent over the last six months, establishing itself as the best-performing ETF on the ASX for the period.


The ETF, which was designed by ANZ ETFs to generate yield while mitigating volatility, produced a six-month return of 11.94 per cent over the second half of 2015.

The double-digit return comes as ETFs continue to gain in popularity, with the industry expected to grow by $8 billion this year.

ANZ ETFs head, Kris Walesby, said: "We are delighted our 'all weather' product suite is providing Australian investors with attractive returns – particularly during times of market downturn."

According to ANZ, the ETF provides a “volatility screen” by selecting the 50 highest-yielding and least volatile stocks on the S&P 500.

With the ETF industry poised for significant inflows this year, State Street Global Advisors (SSGA) pointed out that this trend is actually unsurprising.

Data produced by SSGA's ETF arm indicated that there have been two distinct periods where investors have gravitated towards ETFs – the 2008 global financial crisis and now. 

Amanda Skelly, head of SSGA Australia ETFs, said in the current volatility-driven market, stock picking is too difficult. 

"While dramatic share market declines often trigger worrying and irrational behaviour, they also trigger a shift to investment products that provide access to a diversified portfolio of company stocks, bonds and commodities, like [ETFs]," she said. 

In a chart produced by the ASX, it was reported that CBA's share price fell from over $84 in August 2015 to less than $70 at the end of September. NAB has also experienced a price decline, down from over $34 in August last year to a current low of under $27. 

 

 

 

 

High-yield ETF delivers near 12% in volatile 2015
investordaily image
ID logo
promoted stories

Appointments

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Brad Fox

Former AFA CEO appointed to boutique board

Staff Reporter

Analysis

ST Wong

Busting common passive investing myths

ST Wong

investordaily image

The long-term case for real estate

Chris Bedingfield

investordaily image

Shining a light on investment options

Stuart Hoy