Having officially opened its doors, ETF Shares has launched its first three US-focused ETF vehicles on Cboe Australia for financial advisers.
It was announced last week that former Global X employees David Tuckwell and Cliff Man had established their own ETF provider, ETF Shares, to disrupt Australia’s concentrated ETF market.
Co-founders Tuckwell and Man previously worked together at Global X as a senior product and investment strategist and head of portfolio management, respectively. At ETF Shares, Tuckwell is the chief investment officer, while Man holds the chief executive position.
Alongside the co-founders is Arjun Shanker as its chief revenue officer, who also served at Global X as a senior business development manager.
Chairing the company is Graham Tuckwell, who originally established ETF Securities Australia in 2005, which was later rebranded as Global X in 2022 when it was acquired by Mirae Asset Global Investments.
ETF Shares has now listed its first three products on Cboe Australia: the ETFS US Quality ETF (BEST), ETFS US Technology ETF (WWW), and ETFS Magnificent 7+ ETF (HUGE). All three products are US-focused and have management fees of 0.29 per cent per annum.
Looking at BEST, the investment vehicle gives investors exposure to 100 large US companies offering superior quality characteristics, defined as free cash flow margin and free cash flow return on invested capital.
The WWW product provides exposure to the largest and most liquid US technology companies, while HUGE has allocations to the 10 largest US companies on the Nasdaq Stock Exchange.
“Australia’s ETF market has grown rapidly but remains highly concentrated. Our goal is to inject meaningful competition into the index ETF space – something advisers and investors have been missing,” Man described.
The ETF provider is harnessing an “adviser-first” distribution strategy, due to financial advisers being the primary users of ETFs in Australia.
“We understand the local advice landscape, including the regulatory shifts following the royal commission. That knowledge, combined with our product expertise, positions us to serve advisers in a way other providers simply can’t,” Tuckwell said.
ETF Shares’ launch also marks the first time an index ETF provider has chosen Cboe as its exclusive listing venue, according to the firm.
Commenting on this, Cboe Australia’s president Emma Quinn said: “We are delighted to partner with ETF Shares to introduce their first ETFs to the market and it is an honour to be their venue of choice.
“This launch broadens the range of investment options available to investors, and underscores Cboe’s dedication to facilitating access to innovative financial products that contribute to the growth of the Australian market.”
