"We have initiated coverage on ETFs based on our expectation of increasing client demand for ETF products and have formally launched our research in the space," Zenith director David Wright said.
"The Russell High Dividend Australian Shares ETF, launched in May this year, received a recommended rating from Zenith, with the fund considered to be an attractive option based on its dividend-focused large-cap skew.
"In Zenith's view, the fund has been well designed, with the manager cognisant of the common risks associated with income-focused Australian shares investing."
According to Zenith, Russell Investments as a business was also well positioned to manage ETFs based on its ability to draw on the knowledge and expertise of a number of underlying capabilities within the group, including its index business.
"This is a key differentiator for the firm in managing ETFs," Wright said.
