VanEck’s FUM reaches $1bn
VanEck Australia has announced that its funds under management (FUM) have reached $1 billion across a range of equities and fixed income exchange-traded funds (ETFs) in just three years.
The company said the growth was driven mainly by strong demand from investors seeking low cost investment strategies “with well-defined outcomes.”
VanEck Australia’s managing director, Arian Neiron, said he expected that the Australian ETF market would be valued between $70 billion to $80 billion within five years while smart beta would be likely to account for a quarter of it.
“Our smart beta ETFs aren’t based on fads or fashion, but on solid investment strategies which deliver clearly defined investment results,” he said.
“Outperformance is the biggest attraction, followed by lower costs compared to actively managed funds.”
VanEck commenced operations in Australia in 2013 with launch of four ETFs: VanEck Vectors Australian Banks ETF, VanEck Vectors Australian Resources ETF and VanEck Vectors Australian Property ETF.
Recently, the company has also launched new fixed Income RTFs:
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