iShares welcomes ASX changes to trading fixed income ETFs
Following changes made to the Australian Securities Exchange's (ASX's) Operating Rules, fixed income exchange traded funds (ETFs) can now trade in Australian markets.
Fixed income ETFs were previously only available overseas, until calls for a wider range of ETFs were made by issuers, investors and the ASX.
Commenting on the changes to fixed income AQUA products, ASX general manager equity markets Richard Murphy said the ASX has worked closely with the Australian Securities and Investments Commission on the development of the new rules.
"We are pleased to offer a framework that will provide a mechanism for both retail and institutional investors to gain efficient access to fixed income assets with the benefit and security of trading on the exchange," Murphy said.
"We expect to see fixed income products, such as government bond ETFs, quoted on the ASX in the near term, which will fill a gap in the existing asset classes of equities, currencies and commodities which Australian ETFs are currently quoted over."
Fixed income ETFs have proven popular overseas due to their reliability, liquidity, transparency and cost effectiveness, said iShares Australia managing director Mark Oliver.
Oliver added that following the global financial crisis, the portfolio diversification that can be offered by fixed income ETFs has become increasingly appealing to self-managed super fund investors, direct investors, financial advisers and institutions.
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
