VanEck launches fixed income ETF

VanEck/funds-management/investments/

27 April 2017
| By Oksana Patron |
image
image
expand image

VanEck has announced plans to launch shortly a new smart beta Australian fixed income exchange traded fund (ETF) on the Australian Securities Exchange (ASX), called the VanEck Vectors Australian Corporate Bond Plus ETF (PLUS), which is expected to provide investors with exposure to high-grade Australian dollar corporate bonds with a yield premium.

It would track the Markit iBoxx AUD Corporates Yield Plus Index, which included around 120 Australian-issued corporate bonds from over 80 issuers, and which selects the top 50 per cent highest yielding bonds issues in Australia.

According to VanEck Australia’s managing director, Arian Neiron, the new fund would target investors who were in retirement and would be suited to those seeking simple and cost effective exposure to the Australian fixed income sector as it was designed for defensive allocations.

“PLUS provides a new opportunity for investors seeking exposure to Australia’s corporate bond market with a yield premium,” he said.

“In the current low interest rate environment, finding liquid defensive high yield has been a considerable challenge for investors.”

“Globally VanEck manages US$9 billion in fixed income ETFs and PLUS extends on our philosophy to provide investors with opportunities to asset classes often underrepresented in their portfolios or new approaches to established asset classes.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS