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Betashares to capitalise on growing popularity of international equities

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Betashares is expanding its range of Nasdaq ETFs, after announcing last month that its flagship equities funds surpassed $4 billion in FUM.

The firm said on Thursday it expects to launch two new Nasdaq funds – Nasdaq Next Gen 100 ETF and Nasdaq 100 Equal Weight ETF – on the ASX later this month, following final regulatory approval.

Last month, Betashares said its Betashares Australia 200 ETF (ASX: A200) and the Betashares Nasdaq 100 ETF (ASX: NDQ) both surpassed $4 billion in funds under management during January after collectively receiving $1.4 billion in net flows over 2023.

According to the firm, the launch coincides with increased interest among investors and advisers for international equities.

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Namely, the firm is predicting that, after gravitating to cash and fixed income ETFs in 2023 amid rising interest rates, international equities ETFs will see strong flows from investors over 2024 as sentiment around growth assets improves.

Recent research by Betashares and Investment Trends found that 53 per cent of ETF investors plan to allocate to international equities in the next 12 months, up from 42 per cent the previous year.

“We continue to see strong adoption of international equities ETFs within investor portfolios, as they better recognise the importance of diversification across asset classes and investment styles,” said Betashares chief executive officer Alex Vynokur.

“These two new funds will complement NDQ and further assist with this important objective by providing additional tools with which to build out an allocation to international equities.”

Betashares Nasdaq Next Gen 100 ETF (JNDQ) will invest in the 100 largest Nasdaq-listed non-financial companies by market capitalisation beyond the Nasdaq-100 Index, providing investors exposure to a portfolio of the “rising stars of the Nasdaq”, the firm said.

Betashares Nasdaq 100 Equal Weight ETF (QNDQ) will invest in an equally weighted portfolio of Nasdaq 100 companies, offering “significant diversification benefits and lower stock and sector concentration risk”.

Net flows into Australian and international equities ETFs hit a collective $8.2 billion last year, helping propel the Australian ETF industry to a record $177.5 billion in funds under management at the end of 2023.

Cash the preference in 2023

In December, Betashares announced an expansion of its range with the addition of four new funds offering geared long and geared short exposure to 10-year US Treasuries and Australian government bonds.

At the time, Mr Vynokur said: “Our new range of geared fixed income exposures can play a helpful role in allowing investors and asset allocators navigate different market conditions in a more convenient investment vehicle.”

The firm now offers 18 funds in the category of cash, hybrids, and fixed income with a total of more than $10 billion in funds under management, which Betashares said makes it the largest provider of cash, hybrids, and fixed income ETF solutions in Australia.

Alongside Betashares, a number of other firms have also expanded their line-up of cash and fixed income ETFs in 2023, including JP Morgan Asset Management, Macquarie Asset Management, VanEck, and BlackRock.

Betashares to capitalise on growing popularity of international equities

Betashares is expanding its range of Nasdaq ETFs, after announcing last month that its flagship equities funds surpassed $4 billion in FUM.

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Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.

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