Positive outcomes for ETFs

Since the firm was founded in 1955, VanEck has prided itself on providing investors with access to new and exciting opportunities to grow and protect their wealth, so it’s no surprise they took out this year’s Money Management ETF Provider award.

It is now one of the largest issuers of exchange-traded funds (ETFs), having embraced the investment style, which had lowered the cost of accessing key investment markets.

Arian Neiron, Managing Director and Head of Asia Pacific, said the fund was proud their ecosystem of ETFs enabled investors to build and maintain robust portfolios which had demonstrated higher risk-adjusted returns.

“We are proud of the fact that our focus on durable funds allows investors to access in opportunities that are often under-represented in their portfolios or offer a new way to invest in an established investment category,” Neiron said.

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VanEck differentiated itself by being privately owned and had been one of the world’s largest ETF providers with a network of franchises across the world’s major financial epi-centres.

“Being private-owned means we are strongly aligned to investor’s objectives across their designated timeframe and are focussed on ensure the desired outcome is achieved,” Neiron said.

“Furthermore, the firm has an established track record in both active and passive across a range of economic cycles and we take a highly considered approach to investment solutions by avoiding fads or chasing what is in vogue.”

There are three key ETFs they believed had performed well: the VanEck Vectors Australian Equal Weight ETF (MVW), the VanEck MSCI World Ex Australia Quality ETF (QUAL) and the VanEck Vectors China New Economy ETF (CNEW).

Neiron predicted in the next year ETFs would become mainstream among financial intermediaries, particularly those advisory firms aligned to large institutions.

“There has been an opening up of approved product lists enabling advisers to employ ETFs in their client’s portfolios,” Neiron said.

“Furthermore, we see institutions increasing their usage of fixed income and sustainable ETFs.”

Alex Vynokur, chief executive officer of BetaShares, said their offering relied on the fact they are an Australian ETF manager.

“We at BetaShares are very focused on delivering responsible innovation to Australian customers, our product range reflects those values,” Vynokur said.

Balaji Gopal, Head of Product Strategy for Vanguard Australia, said the main traits investors should look for in ETFs are low-costs, broad diversification, transparency of investment strategy, pricing, and liquidity.

“These are the traits Vanguard prioritises when we consider and deliver ETF products to market,” Gopal said.

“Our approach to product development is responsible, considered and focusses on introducing products following a critical evaluation of their ability to benefit investment portfolios, and carry common traits of low cost and diversification.”