VanEck Australia has opted to add one of FTSE Russell’s real estate indexes to its global property fund newly listed on the ASX, the VanEck Vectors FTSE International Property (Hedged) ETF.
The firm selected the FTSE EPRA Nareit Developed ex Australia Rental in AUD Hedged Net Tax index, which FTSE said captures 305 REITs representing the world’s developed markets.
The index, the company said, represents the performance of eligible listed real estate stocks where the company’s rental revenue from investment properties is greater than or equal to 70 per cent of its total revenue.
The ETF was listed yesterday on the ASX.
Listed property has long been a compelling asset class for Australian investors, according to FTSE, particularly as it provides regular income streams, diversification and long-term capital appreciation.
“Investor appetite for access to international property stocks continues to grow, creating a demand for indexes that reflect the commercial real estate market with the added liquidity, transparency and regulation associated with investing in publicly traded stocks,” Evan Ong, managing director, ETP Relationships, Asia, FTSE said.
Arian Neiron, managing director and head of Asia-Pacific, VanEck added: “We are delighted to collaborate with FTSE Russell for an Australian first.
“This new ETF offers investors diversified exposure to listed global securities which derive the majority of their income from property rental income.”
The index is part of the FTSE EPRA Nareit Global Real Estate Index Series, designed to represent the performance of listed real estate stocks worldwide, including REITs and other companies involved in the ownership and development of income-producing real estate.
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Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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