Macquarie sparks ETF innovation
Macquarie Bank has rolled out Australia’s first instalment warrants over a listed exchange traded Fund (ETF).
Macquarie launched four listed instalment warrants which give investors exposure to State Street Global Adviser’s two ETFs - streetTRACKS 50 and streetTRACKS 200.
Macquarie equity markets division director Cathy Kovacs says the group’s four instalments are separated into two levels of gearing. Investors can choose from either regular instalments that are geared to around 50 per cent or HOT instalments that are more highly geared.
She says the ETF instalments offer exposure to streetTRACKS 50 that invest in either the 50 leading Australian shares by market capitalisation or the top 200 leading Australian shares, by market capitalisation streetTRACKS 200.
Kovacs says the warrants are particularly attractive to self-managed super funds.
“Instalments are considered to be an eligible form of borrowing for a self-managed super fund, so an investor could borrow for these funds unlike regular unlisted instalment warrants that do not allow borrowing for super,” she says.
The cost of the Macquarie instalment includes a borrowing payment of 7.95 percent, with a minimum investment of $2000.
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