SSgA launches new ETF
State Street Global Advisors has launched a new product – an exchange traded fund (ETF) aimed at providing Australian investors with access to international equities while mitigating their currency risk.
The new product, launched this week, is the SPDR S&P World ex-Australia (Hedged) Fund. It started trading on the ASX on 9 July, with SSgA claiming it is the first product of its kind in Australia.
The company has since March been offering Australian investors access to an unhedged global equities ETF – the SPDR S&P World ex-Australia priced in Australian dollars and listed solely on the ASX.
It claims both products provide local investors with the ability to diversify their portfolio, with exposure to approximately 350 international equities in sectors that are either unavailable or more difficult to access in the Australian marketplace, which is top heavy with financial and resource stocks.
Commenting on the latest product launch, SSgA head of SPDR ETFs in Australia, Amanda Skelly, said the latest hedged version of SSgA’s global equities ETF reflected investor demand for access to the same selection of international companies while minimising the impact of currency changes on the value of their investment.
“There is certainly a loud and ongoing debate about the direction of the Australian dollar. But stripping away the noise, it is clear that, for many investors who are trying to achieve diversification, it is challenging enough without the added complexity of guessing where the currency is heading,” Skelly said.
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