ETF sector heats up with more products to market
Australia's exchange traded funds (ETF) sector is set to see more activity with the three new products launched by major players with BetaShares launching a US equities ETF and iShares launching a hedged versions of two existing products.
BetaShares will offer its FTSE RAFI US 1000 Index ETF under the Australian Securities Exchange (ASX) code "QUS" which access the largest 1000 securities by 'fundamental value' amongst US-listed stocks.
BetaShares managing director Alex Vynokur believes the launch will provide investors with a way to obtain diversified US equities exposure, with the potential to outperform the market-cap benchmark over the long-term similarly to more active strategies.
"Investors looking for simple, transparent access to the US equities market through an ETF will now have the option of selecting a product that provides broad-based exposure at low cost, while additionally using an intelligent methodology that seeks to avoid the potential of market cap indices to overweight stocks that are overvalued, and underweight stocks that are undervalued", Vynokur concluded.
The two iShares ETFs are hedged versions of its Core S&P 500 ETF and Global 100 ETF and lift its ETF product suite to 28 with Jon Howie, Head of BlackRock's iShares business in Australia stating the two ETFs are constructed by combining the respective unhedged iShares ETF with applicable currency forward contracts.
"With the Australian sharemarket representing just 3 per cent of global markets, it means 97 per cent of the investment opportunity is outside Australia. iShares international ETFs help investors access these global opportunities and provide instant, diversified exposures with just one trade on the ASX," Mr Howie said.
AUTHOR
Priya Prakash
Recommended for you
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
