ETF options continue to grow
The options available to investors in Australia's exchange traded fund (ETF) sector are continuing to grow, with VanEck announcing plans for two new products.
VanEck managing director, Arian Neiron, revealed the company is close to launching two ETFs targeting global infrastructure and ASX200-listed firms that have provided 100 per cent franked dividends.
Nerion said the VanEck Vectors FTSE Global Infrastructure (Hedged) ETF (IFRA), would enable investors to gain access to global infrastructure securities, while the VanEck Vectors S&P/ASX Franked Dividend ETF (FDIV), which will only include firms that have delivered 100 per cent franked dividend over the last two years.
"The new ETFs have been created in response to increasing demand from Australian advisers and investors for greater choice, flexibility, transparency and cost-effectiveness when investing," he said.
"IFRA meets the increasing demand for global infrastructure as investors continue to be attracted to its stable income and low correlation to traditional asset classes.
We are excited to be the first to give Australian investors the opportunity to access a portfolio of global infrastructure securities via a single trade on ASX.
"FDIV will be the only passive investment strategy that only includes Australian companies that have paid dividends with 100 per cent franking credits.
Australian investors have a love affair with franking credits particularly those who have a zero tax rate. There is nothing more gratifying than receiving a cheque from the Australian Taxation Office."
AUTHOR
Nicholas O'Donoghue
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