Lonsec rates Market Vectors ETFs
Lonsec has rated yet another exchange traded fund (ETF) offering – this time the four Australian ETFs of Market Vectors ETFs – the ETF business of US-based investment manager Van Eck Global.
The company announced earlier this week that all four of the Australian ETFs had been rated 'Investment Grade' by Lonsec.
The four products rated by Lonsec were the Market Vectors Australian Banks ETF, Market Vectors Australian Emerging Resources ETF, Market Vectors Australian Property ETF and Market Vectors Australian Resources ETF.
The four products were launched onto the Australian Securities Exchange earlier this month.
Market Vectors' director of institutions and intermediaries, Matthew McKinnon, said he was pleased to receive such positive feedback from Lonsec.
“Our ETFs offer something different to other ETFs listed in Australia because they aim to track pure play investable indices, which are purpose-built for ETFs by Market Vectors Index Solutions,” he said.
“To qualify for inclusion in the underlying index, companies must generate at least 50 per cent of their revenue or assets from a particular sector. This is what is defined as ‘pure-play’,” McKinnon said.
“Strict liquidity screens are then applied to determine individual components, then individual weightings are determined subject to caps. The result is targeted exposure with real diversification to all underlying securities.”
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
