BetaShares launches new ETF
Australian exchange-traded fund (ETF) provider BetaShares has launched its new Global Income Leaders ETF (INCM) which will offer Australian investors access to a portfolio of 100 global companies (ex-Australia).
The new fund would track the Nasdaq Global Income Leaders Index, based on a dividend yield-weighting methodology which assigns a larger weight to companies with a higher dividend yield.
As at 30 September, INCM’s index showed a 12-month trailing dividend yield of around 4.5 per cent per annum, the firm said.
Also, INCM’s index had a more favourable long-term return performance compared to traditional global benchmarks.
According to BetaShares’ managing director, Alex Vynokur, income-oriented Australian investors such as self-managed superannuation fund (SMSF) trustees, retirees and people approaching retirement would find INCM’s exposure to international shares particularly attractive.
“Most Australian investors understand that investing in global markets is a great way to diversify portfolios, particularly with the high levels of exposure that most Australian share portfolios have to local companies like the Big Four banks and big miners,” he said.
“However, investors who desire such international diversification typically find that they generally have to accept a lower level of income when investing in global shares.
“INCM has been built to meet that challenge.”
AUTHOR
Oksana Patron
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
