ETF provider VanEck Vectors has launched a new ETF that tracks the FTSE Developed Core Infrastructure 50/50 index, hedged into Australian dollars.
The VanEck Vectors FTSE Global Infrastructure (Hedged) ETF, with ticker 'IFRA', will be listed on the ASX later today, according to VanEck Australia managing director Arian Neiron.
"We are excited to be the first asset manager and ETF provider to give Australian investors the opportunity to access a portfolio of global infrastructure securities via the ASX," Mr Neiron said.
"IFRA meets increasing investor demand for global infrastructure which has traditionally provided investors with stable incomes and low correlation to other asset classes," he said.
The FTSE Developed Core Infrastructure 50/50 is run by FTSE Russell, with stocks in the portfolio weighted according to three broad industry sectors: 50 per cent utilities, 30 per cent transportation, and 20 per cent pipelines, satellites and communication towers.
"The FTSE Index is transparent and rules-based ensuring sector targets which provide diversification and reduces concentration risk at both the sub-sector and stock level," Mr Neiron said.
"This index has become the global infrastructure benchmark used by industry participants including asset consultants and asset managers and we are very pleased to be partnering with FTSE to offer this ETF to Australian investors seeking stable incomes and low correlation to traditional asset classes," he said.
As the world ramps up its response to the coronavirus outbreak, an investment manager has projected a GDP contraction of around 15 per cent ...
Systemic risk has hit an all-time high, a financial services giant has reported, with the coronavirus pandemic continuing to take hold of t...
One of the world’s largest investment banks says it’s impossible to tell when the global economy will reopen for business as draconian c...