Lonsec upgrades three ETF Securities funds
Lonsec has upgraded its ratings for three of the ETF Securities funds, which included: the ETFS S&P/ASX 300 High Yield Plus ETF (ZYAU), ETFS Morningstar Global Technology ETF (TECH) and ETFS ROBO Global Robotics and Automation ETF (ROBO).
ZYAU saw its rating change to ‘highly recommended’, while both TECH and ROBO were rewarded by Lonsec with a new ‘recommended’ rating.
The upgrade of ZYAU, which recently passed the $100 million mark in funds under management, would mean this financial product would be considered as a preferred entry point to its asset class or strategy, the firm said.
Lonsec acknowledged its means of gaining exposure to high yielding, large, mid and small-cap equities listed on the Australian Securities Exchange (ASX) and said the rating indicated the fund’s ability to generate risk adjusted returns in line with relevant objectives.
TECH was singled out by the research house due to its investment strategy and strong performance as well as the low-cost exposure to global IT companies it offered, ETF Securities’ chief executive, Kris Walesby, said.
Following this, the upgrade of ROBO was driven by Lonsec’s positive view of the effectiveness of the index’s methodology and operation.
“The underlying index is provided by ROBO Global, an organisation dedicated to the research of the robotics and automation industry,” the research house said in its report.
“Lonsec considers ETF Securities to have in-depth scale and resources to effectively manage and structure ETFs plus a proven track record of successfully running index strategies.”
AUTHOR
Oksana Patron
Recommended for you
Bell Financial Group has announced a 44 per cent decline in half-year net profit after tax but record funds under advice as it transitions into a diverse wealth management business.
Having predicted three ETF trends for Australia at the start of this year, State Street has shared how these are tracking and whether Australia will successfully reach US$30 billion ETF inflows for 2025.
Magellan fund manager Nikki Thomas is to depart next month as the firm reviews its range of global equity funds and transitions her High Conviction fund.
Sydney-based alternative fund manager East Coast Capital Management has formed its first advisory council as it enters its next phase of growth.
