VanEck spruiks latest smart beta ETF
ETF provider VanEck is set to launch its latest smart beta ETF – the MSCI International Growth ETF (GWTH) – ushering in a new growth international equities strategy.
Expected to commence trading in the ASX on 28 August, VanEck said the new ETF will complement the firm’s international quality, value, and small cap strategies.
Likewise to other smart beta strategies, VanEck said GWTH will utilise a systematic, rules-based approach to target outperformance opportunities.
“Investing in growth stocks has traditionally been the domain of active managers, limiting access by the broader investor population. GWTH democratises this opportunity, with convenient access via ASX at a fraction of the typical active management fee,” the firm said.
VanEck chief executive and managing director, Arian Neiron, said the new ETF will help investors to diversify their portfolios and capitalise on market opportunities seen in the first half of 2025.
“GWTH will allow investors to add a dedicated growth exposure to their portfolio, for passive fees. Importantly, the growth factor is a diversifier away from the overheld companies, with NVIDIA being the only ‘Magnificent 7’ company currently included in the portfolio.
“Minimal overlap between GWTH, the international benchmark, and factor ETFs provides further diversification benefits.”
Neiron added: “Our objective with GWTH was to develop a smart beta strategy that captured ‘pure’ growth characteristics, and we believe that a disciplined approach to delivering growth exposure can overcome the style drift and capacity challenges often faced by active managers in this segment.”
Once GWTH launches, VanEck will have 46 ETFs of the ASX.
Notably, interest in smart beta ETFs has grown significantly among investors throughout 2025, with VanEck reporting flows of $1.1 billion into smart beta ETFs in July, compared to $492 million in March.
Speaking with Money Management earlier this month, Neiron said: “We are seeing greater interest in smart beta as investors increasingly seek broader investment opportunities that can offer diversification, selectivity, as well as targeted outcomes. The macroeconomic and geopolitical landscape has seen considerable change this year, and smart beta ETFs provide investors with a convenient and cost-effective pathway to sophisticated investment strategies designed to perform through the cycle.”
Meanwhile, Betashares investment strategist Tom Wickenden said these funds provide an avenue for advisers to offer complementary or substitute options for broad market ETFs.
"Investors have far greater options to seek outperformance in their portfolio as a result of the growth of smart beta investment solutions,” Wickenden told Money Management.
“A smart beta ETF can be a very valuable addition to an investment portfolio and can outperform by capturing systematic sources of market returns, which have traditionally been attributed to active performance, while also adding in the benefits of lower costs associated with index investing.”
AUTHOR
Shy-Ann Arkinstall
Recommended for you
More than 25 winners have been announced at the second annual Australian Wealth Management Awards.
A former financial adviser has been extradited from New Zealand after being alleged to have misappropriated $4.1 million from 13 clients.
Adviser numbers have continued the winning streak for the 2025–26 financial year with the seventh consecutive week in the green, buoyed by a steady flow of new entrants.
Netwealth chief executive Matt Heine has explained the platform is focused on accelerating its share of the affluent advice market as its NPAT reaches $116 million.
