ETF providers launch niche products
The spate of new exchange traded funds (ETF) being launched into the Australian retail market has continued with two ETF providers launching niche products aimed at subsets of wider indices.
Van Eck Global has released the first Australian small company dividend paying ETF, the Market Vectors Small Cap Dividend Payers ETF, which focuses only on the most liquid ASX listed small companies and only those that paid their most recent dividend.
Van Eck Global Australia managing director Arian Neiron said despite the niche character of the ETF it would have broad appeal as a liquid, transparent and diversified small company portfolio with low management fees.
He said the ETF's index has outperformed with reduced volatility relative to the S&P/ASX Small Ordinaries Accumulation Index over the last five years and is the seventh Market Vectors ETF listed on the ASX in the past 18 months.
It is joined on the exchange by BetaShares NASDAQ 100 ETF which is drawn from an index of the 100 largest non-financial securities listed on the NASDAQ stock market, based on market capitalisation.
BetaShares managing director Alex Vynokur said the underlying stocks were household names and provided exposure to international equities and would tap into growing demand for international equities exposure through ETFs.
He said international equities ETFs had $1 billion of inflows in 2015 alone and the NASDAQ 100 ETF in Australia was a response to strong investor demand.
AUTHOR
Jason Spits
Recommended for you
Investment manager Woodbridge Capital has appointed Ben Evans as executive director, origination, joining the firm from Metrics Credit Partners.
Revolution Asset Management has listed its Private Credit Income Trust on the ASX today, offering retail access to Australian and New Zealand private credit.
Northern Trust Asset Management has appointed Anwiti Bahuguna as global co-chief investment officer to succeed Michael Hunstad, who was recently named president of the firm.
Three managed investment schemes have received interim stop orders from ASIC following its private credit review, including two run by La Trobe Financial Asset Management.
