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VanEck selects FTSE Russell index for its real estate ETF

VanEck/

5 April 2019
| By Oksana Patron |
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VanEck Australia has announced it has selected the FTSE EPRA Nareit Developed ex Australia Rental in AUD Hedged Net Tax Index for its latest exchange traded fund (ETF), the VanEck Vectors FTSE International Property (hedged) ETF, which was listed on the Australian Securities Exchange (ASX).

The index represented the performance of eligible listed real estate stocks where the company’s rental revenue from investment properties was greater than or equal to 70 per cent of total revenue, the firm said.

The index was set up in 2009 and included the performance of eligible listed real estate stocks worldwide such as real estate investment trusts (REITs) and other companies involved in the ownership and income-producing real estate.

FTSE Russell’s managing director ETP relationships, Asia, Evan Ong, said that the firm would continue to create indexes that were designed specifically for the Australian market.

“We are delighted to collaborate with FTSE Russell for an Australian first. The VanEck Vectors FTSE International Property (Hedged) ETF provides investors with low-cost access to the returns of international property securities hedged into Australian dollars,” VanEck’s head of Asia Pacific, Arian Neiron, said.

“This new ETF offers investors diversified exposure to listed global securities which drive the majority of their income from property rental income.”

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