Vanguard has launched a new Australian property securities exchange-traded fund (ETF) and said its local ETF assets recently surpassed $200 million.
The Vanguard Australian Property Securities Index ETF seeks to track the S&P/ASX 300 Australian Real Estate Investment Trust (A-REIT) index and has a management cost of 0.34 per cent.
The fee makes it the lowest cost property ETF currently available for Australian investors, Vanguard ETF product manager Robyn Laidlaw said.
There were a number of roles that listed property securities could play in most investors’ portfolios, including to position to hedge against unexpected inflation, and to access a relatively stable income stream, she said.
“We have seen a significant interest in ETFs with self-managed superannuation funds and adviser clients in our existing products, so I imagine this ETF will appeal to a similar audience,” she said.
“Property securities would typically suit investors with a longer-term investment timeframe.
“Investors in listed property can expect a tax-effective and relatively stable income yield and potential for long-term capital growth.”
The ETF has 22 securities including Westfield, Stockland, Mirvac and ING Industrial Fund.
The product is expected to be quoted for trading on the Australian Securities Exchange from 15 October.
Vanguard’s existing local ETFs include the Vanguard Australian Shares Index ETF, Vanguard All-World ex-US Shares Index ETF and the Vanguard US Total Market Shares Index ETF.
“Our Australian shares ETF represents roughly 75 per cent of our ETF funds under management. This ETF is the fourth largest currently in the Australian marketplace,” Laidlaw said.
