Global X and VanEck announce latest ETF launches
Global X and VanEck both unveil their latest ETFs, focused on cyber security and government bonds.
Global X has launched the Cybersecurity ETF (BUGG), which will track the Indxx Cybersecurity Index and target companies that derive more than 50 per cent of their revenue from cyber security activity.
This includes the development and management of security systems preventing cyber attacks to applications, computers and mobile devices.
Evan Metcalf, chief executive of Global X, said: “BUGG invests in a well-diversified portfolio of companies that have the potential to generate significant value for investors by being at the forefront of cyber security.
“Cyber security is a matter of personal, organisational and national security. Australians have seen firsthand during the major Medibank and Optus data breaches how devastating cyber attacks and hacking can be.”
The ETF’s management fee is 0.47 per cent per annum.
This is the 35th listed ETF from Global X on the ASX and adds to other technology strategies from the firm, including Global X Battery Tech & Lithium, Global X Semiconductor ETF and Global X Morningstar Global Technology ETF.
Global X has also reduced the management fee on its Semiconductor ETF (SEMI) from 0.57 per cent to 0.45 per cent.
“We are determined to offer our clients cost-efficient access to tactical and strategic solutions. SEMI is the only pure-play semiconductor ETF currently available on the Australian market, so we see this fee reduction as a positive opportunity for more local investors to realise the powerful potential of this thematic,” Metcalf commented.
Meanwhile, VanEck will launch three Australian government bonds: VanEck 1-5 Year Australian Government Bond ETF (1GOV), VanEck 5-10 Year Australian Government Bond ETF (5GOV) and VanEck 10+ Year Australian Government Bond ETF (XGOV).
The ETFs will help investors to target those parts of the yield curve that exhibit the greatest volatility difference, and each will be a portfolio of Australian government and semi-government bonds.
“Playing the yield curve is one way bond investors can add relative value to their bond portfolio. They can do this by buying bonds at specific maturity buckets in anticipation of changes to the shape of the yield curve. VanEck’s new ETFs provide investors with a way to do this,” the ETF provider said.
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Laura Dew
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