Aussie equal weight ETF doubles FUM
VanEck's broad share market exchange traded fund (ETF) has doubled its funds manger management (FUM) in six months, surpassing $125 million in assets, as investors flock to get returns from its outperformance, acccording to the fund manager.
Over the last 12 months, VanEck's Australian equal weight ETF (MVW) had the best performance of all index-based ETFs, which tracked the broad Australian share market.
It outperformed the S&P/ASX 200 accumulation index by 9.26 per cent and consistently outperformed it over three, six and 12 month periods.
VanEck Australia, managing director, Arian Neiron, said the demand from self-managed superannuation funds (SMSF) investors, advisers and institutions resulted in MVW doubling its assets under management in the past six months.
In the current challenging equity market, investors were increasingly fee conscious, "however it's important that they remain focused on their investment objectives", he said.
Its "equally weighting" holdings delivered greater exposure to stocks outside the ASX top 10 where there was more potential for growth, he said.
That reduced "the concentration risk prevalent in many Australian investment portfolios" that were over-exposed to the top 10 largest companies on the ASX, he added.
ETFs were "an ideal investment vehicle to access a diversified portfolio of Australian equities" and more and more investors were attracted to VanEck's MVW for its "low cost (0.35 per cent per annum)" transparency and "straight-forward investment strategy".
Recommended for you
Statutory NPAT at Pacific Current has almost halved in FY25 to $58.2 million as the result of an investment restructure.
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
Regal chief investment officer Philip King will step down from listed investment company VGI Partners Global Investments after the LIC reported a loss of $17.6 million for FY25.
Real asset commentators have shared what advisers should be considering when conducting their due diligence on the assets and how they can mitigate illiquidity for retail clients.
