ANZ make ETF play via joint venture
ANZ has become the first bank to move into the provision of exchange traded funds (ETF) and has set up a joint venture company to initially offer six ETF products via the Australian Securities Exchange (ASX).
The new company, ANZ ETFS Management (ANZ ETFS), has been formed after the bank teamed with London based exchange traded product provider ETF Securities and will be staffed by executives from both organisations.
ETF Securities Head of Australia and New Zealand, Danny Laidler, will co-lead the Sydney based company with as Co-Head and Head of Distribution alongside ANZ Global Markets Director of Business Execution Adam Smith who will be Co-Head and Chief Operating Officer of the joint venture.
The six ETFs will be offered to financial advisers and investors with three of them to be based on S&P Dow Jones Indices — the S&P ASX 100 Index, the S&P 500 Low Volatility High Dividend Index and a new S&P/ASX 300 Shareholder Yield Index, with the latter covering Australian listed companies with high shareholder yields.
Three other ETFs will be offered as a physical US Dollar ETF, a physical offshore Renminbi ETF and a physical gold ETF, with further ETFs to be in Australia and other Asia-Pacific markets.
ETF Securities chair Graham Tuckwell his group has teamed with ANZ because interest in ETFs had hit record levels in the past year after a slow start in which Australia had been among the early adopters of ETFs in the early 2000's but had seen other markets adopt them in greater numbers over time.
AUTHOR
Jason Spits
Recommended for you
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
Ahead of the approaching end of the financial year, State Street has shared five tips for advisers who are using ETFs in their client portfolios.
The use of active ETFs in model portfolios by financial advisers is a key factor in the growth of the products for iShares, according to BlackRock.
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
