State Street Global Advisors (SSGA) is set to launch three new exchange-traded funds (ETF) in the Australian market to expand its existing suite of products.
The new ETFs will offer exposure to market sectors including resources, financials and small-cap stocks and they are expected to start trading on the Australian Securities Exchange (ASX) on 13 April.
The planned launch comes as SSGA projected the Australian ETF market to grow to $35 billion by 2015, driven by increased use from financial planners, self-managed superannuation funds and institutional investors.
The Australian ETF market had $4.5 billion in funds under management as at February, according to the ASX.
“With an estimated US$1.4 trillion in global funds under management, ETFs are being embraced by an increasing number of investors looking for transparent, easy-to-trade and low-cost investment solutions,” SSGA senior managing director and global head of SPDR ETFs Jim Ross said in Sydney.
“Australia is an extremely competitive and sophisticated market which has supported SSGA’s products since we launched the first ETF here – the SPDR S&P/ASX 200 – in 2001.
“SSGA is determined to retain leadership in Australia with a strong suite of ETF products which meet the portfolio needs of retail and institutional customers.”
The new SPDR ETFs would offer more precise exposure to two of the market’s dominant segments, while small caps were an acknowledged growth sector, SSGA Australia senior managing director Rob Goodlad said.
“They will enable investors to customise their portfolios while retaining a conservative, index-linked framework,” Goodlad said.
“These new SPDRs are a welcome addition to the growing global SPDR family as we continue to launch products offering investors a wider range of options but without compromising on the quality of our offering.”
