Exchange traded funds to hit local shores

ASX ETFs australian market retail investors

14 September 2000
| By Kate Kachor |

Exchange-traded funds will soon hit the Australian market, following an agreement made yesterday between Australian Stock Exchange (ASX) and international invest-ment manager State Street Global Advisors (SSgA).

Exchange-traded funds will soon hit the Australian market, following an agreement made yesterday between Australian Stock Exchange (ASX) and international invest-ment manager State Street Global Advisors (SSgA).

Under the agreement, SSgA, the investment arm of State Street Corporation, and ASX will develop a range of exchange-traded funds (ETFs) for both institutional and indi-vidual investors in Australia.

The funds will be managed by State Street Global Advisors Australia (SSgA Austra-lia) and listed and traded on the ASX.

The first ETF is expected to be available next April. Although the first benchmark in-dex hasn’t been decided yet, the agreement allows for the exclusive development of ETFs over the S&P/ASX 20, the S&P/ASX 50, the S&P/ASX 100, the S&P/ASX 200, the S&P/ASX 300 and the All Ordinaries Index.

ASX managing director, Richard Humphry says the initial demand for the funds will be from institutional investors, with the product ideally suited to retail investors seek-ing a low cost way of gaining exposure to equities.

“Providing ETFs forms part of the ASX’s program to meet the growing demand of Australian investors by broadening the range of products and services we offer,” he says.

Humphry says the ASX’s decision to partner with SSgA is because of the global man-agers exchange-traded product experience.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 3 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 3 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 3 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 week 3 days ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

1 week 2 days ago

The Federal Court has given a verdict on ASIC’s case against Dixon Advisory director Paul Ryan which had alleged he breached his director duties....

1 week 1 day ago