Australia's largest ETF ‘highly recommended’


One of Australia's oldest and largest exchange traded fund (ETF) has received a ‘highly recommended' rating from ratings agency, Lonsec Research.
The State Street Global Advisors' ETF business, SPDR, managed the S&P/ASX 200 fund (STW) that was Australia's largest ETF, with $2.8 billion in assets under management.
It was also the first ETF that launched on the Australian Securities Exchange (ASX) 15 years ago, alongside SPDR's S&P/ASX 50 fund, the ETF manager said.
Lonsec said it had very strong conviction that STW could generate risk adjusted returns in line with its objectives.
The ratings house also said the fund was also considered to be priced at a preferred entry point for its asset class/strategy.
In the rating report, Lonsec also said "the fund was an efficient, liquid and cost effective means for investors to gain index exposure to Australian equity markets".
SPDR's S&P ASX 200 has outperformed the index by two per cent, according to the Money Management Investment Centre (MMIC).
For more information about the fund, or to see how it has performed since 2012, click here.
Recommended for you
GQG Partners saw a twofold increase in net flows for 2024, as chief executive Tim Carver eyes a robust pipeline of potential deals for its private capital solutions business in the year ahead.
Brookfield, which recently entered the bidding war to acquire Insignia Financial, has launched a private credit strategy managed by Oaktree for Australian wholesale investors.
Clime Investment Management has appointed two to its operations team, focusing on managed funds, as it continues its cost-cutting process.
The global asset manager’s latest ETF has launched in response to rising adviser and investor demand for actively managed fixed income products.