State Street releases new ETF
State Street Global Advisors(SSgA) has launched what it calls Australia’s first exchange traded fund (ETF) which will be managed against the listed property trust index.
The fund, labelled the streetTRACKS S&P/ASX 200 Listed Property Fund will be managed against the listed property index of its namesake. SSgA will manage the assets of the fund, which aim to track the composition and performance of the index.
SSgA director of operations James MacNevin describes the launch of the fund as “an exciting opportunity not previously available in Australia”.
“The fund is designed to provide investors with an inexpensive and flexible tool to gain exposure to the breadth and depth of Australian listed property, including commercial, retail, industrial and hotel/tourism properties.”
The latest ETF fund is the third to be released by SSgA, which now joins the streetTRACKS S&P/ASX 50 fund and the streetTRACKS S&P/ASX 200. Net assets of these funds have grown to more than $420 million from $81 million when listing in August of last year.
SSgA managing director Bernard Reilly says the launch of the listed property ETF is part of SSgA’s commitment to providing Australian investors with innovative investment strategies. According to SSgA, the streetTRACK 200 is the highest traded security, relative to market capitalisation, in daily trading volume, with a level of $8 million per day.
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