BetaShares and BlackRock have each launched two new exchange-traded funds (ETFs), with a focus on developed markets, infrastructure and real estate trusts (REITs).
BetaShares announced the launch of two new Global (ex-Australia) Shares ETFs, expanding its existing product range for investors and advisers.
The Betashares Global Shares ETF and Betashares Global Shares Currency Hedged ETF would offer investors diversified and low-cost exposure to 1,500 global ASX-listed companies across more than 20 developed market countries, excluding Australia.
With management fees of 0.08 per cent a year and 0.11 per cent a year respectively, the products were designed to be used as core allocations in investment portfolios.
“The upcoming launch of our new Global Shares ETFs represents a thoughtful addition to our range of core exposures and demonstrates our commitment to maintaining our position as the home of ETFs in Australia,” said Alex Vynokur, BetaShares’ chief executive.
On the same day, BlackRock also expanded its core product offerings with the upcoming launch of the iShares Core FTSE Global Infrastructure (AUD Hedged) ETF and the iShares Core FTSE Global Property ex Australia (AUD Hedged) ETF.
The two products would be priced at 20 basis points, which is below half of the current management fee of similar Australian ETFs.
The iShares Core FTSE Global Infrastructure ETF would enable investors to access global infrastructure firms within developed markets.
Meanwhile, the iShares Core FTSE Global Property (ex-Australia) ETF would focus on REITs and listed companies, including office, commercial, retail, industrial and other sectors.
“This announcement of our intent to introduce the lowest-cost global infrastructure and global real estate ETFs in Australia underscores our commitment to deliver advisers and investors the most efficient suite of core building blocks in the market,” commented Jason Collins, deputy head of BlackRock and head of iShares Australia.
He noted that global infrastructure and real estate were core assets due to their consistent income streams, inflation resilience and long-term capital appreciation.
“BlackRock believes more Australians would benefit from access to financial advice, and today’s move by iShares further reduces the input cost in investing, which we hope contributes to meaningful growth in the industry,” added Chantal Giles, head of wealth at BlackRock Australasia.
