The ETFs that launched in Q3
Money Management examines the last three months of ETF launches, with Betashares being particularly active.
Below are the latest ETF launches during the third quarter:
July
No new ETFs were launched in July, a quiet break for fund managers after 36 ETFs were listed in the first six months of the year.
August
Global X challenges Vanguard with low-cost Aussie equity ETF
Launched in August, the Global X Australia 300 ETF (A300) will provide investors with exposure to the 300 largest Australian companies on the ASX, tracking the performance via the FTSE Australia 300 Index. With management fees of 0.04 per cent per annum, Global X said these are almost half that of rival Vanguard’s Australian Shares Index (VAS) which charges 0.07 per cent per annum and also tracks the ASX 300.
Betashares launches EM, fixed income and Aussie equity ETFs
Betashares launched a complex ETF focused on emerging market equities, helping advisers and investors to diversify beyond domestic and US exposure. The ETF, which launched on the ASX on 25 August, provides investors with cost-effective access to 24 emerging markets economies with a management fee of 0.35 per cent per annum.
During the month, it also launched an Australian equity ETF – S&P Australian Shares High Yield ETF – which aims to provide higher income than the broad Australian share market, while avoiding the shortcomings of traditional high-dividend strategies by seeking to screen out potential dividend traps.
Finally, its Global Aggregate Bond Currency Hedged ETF offers global exposure to investment grade bonds, comprising over 30,000 Treasury, government-related, corporate and securitised bonds, originating from 3,100 issuers across more than 70 countries, all hedged into Australian dollars.
Perpetual backs fixed income growth with active ETF
Perpetual Asset Management launched its inaugural fixed income and credit active ETF, cashing in on the recent boom in the asset class. The Perpetual Diversified Income Active ETF, an actively managed diversified portfolio of liquid, mainly investment-grade securities, offers investors access to assets such as senior debt and subordinated bank debt, which can often be more difficult to access directly.
September
IML launches income-focused active ETF
Driven by a desire to capture assets transitioning into pension phase, the IML Equity Income – Complex ETF (EQIN) will offer access to steady income by investing in stocks with sustainable and growing dividends and take advantage of stock market volatility to enhance this income. It is based on the firm’s existing managed fund which has been running for 14 years and achieved an average annual income of 9.4 per cent including franking.
Ausbil launches first active ETF income offering
Ausbil launched its first active ETF in response to adviser demand for a dual-access product offering regular monthly income. The Ausbil Active Dividend Income Fund – Active ETF (DIVI) holds between 25 and 50 listed companies which Ausbil believes support consistent dividends and franking credits for investors that grow with inflation over time, providing investors with a consistent monthly income.
Loftus Peak lists hedged ETF on ASX
Loftus Peak listed a hedged version of its Global Disruption ETF as an active ETF to provide investors with a global equity strategy that has the ability to hedge foreign currency exposure back to Australian dollars. The Global Disruption Hedged Active ETF (LPHD) will offer access to growing market segments, exposure to high-quality companies with structural growth, and global diversification of between 15 and 35 securities.
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Avantis Investors has launched its first active ETFs in the Australian market, backed by American Century Investments, and has told Money Management that future expansion will be based on adviser demand.
ETF provider Global X has expanded its GARP ETF range with the launch of a vehicle focusing on Australian equities.
GCQ Funds Management has appointed a distribution director to work with advisory groups, who joins from Ausbil Investment Management.
ASIC has enacted civil penalty proceedings against Fiducian Investment Management Services alleging it breached its duties as a responsible entity and engaged in misleading and deceptive conduct.
