VanEck’s smart beta emerging markets ETF to list on ASX
VanEck has announced that its Vectors MSCI Multifactor Emerging Markets Equity exchange-traded fund (ETF) will list today on the Australian Securities Exchange (ASX) with the trading code EMKT, offering investors a diversified portfolio of emerging markets companies via a single trade on the ASX.
The fund would track the MSCI Emerging Markets Diversified Multiple-Factor Index (AUD) with the companies being selected against four factors: quality, value, momentum and low size.
The index included large and mid-cap stocks across 24 emerging markets countries and retained a similar risk profile to the MSCI Emerging Markets Index, the firm said.
VanEck’s managing director and head of Asia Pacific, Arian Neiron, stressed that emerging markets was one of the most attractive asset classes at the moment, with emerging markets stocks trading at a significant discount to developed markets, and that long-term trends would favour these markets.
“Emerging market nations account for almost 60 per cent of the world’s population and account for an increasing proportion of global GDP, yet emerging market securities account for less 10 per cent of all equity funds’ holdings,” he said.
“China’s Alibaba and Tencent have growth profiles far more appealing than their developed market technology counterparts, yet many investors don’t have exposure to these companies and for more people, getting it isn’t easy.
“Tencent has an astonishing growth rate of 750 per cent in five years or 53 per cent annualised and Korea’s Samsung, already a global brand, accounts for many electrical products in many Australian homes, yet is rarely represented in Australian investment portfolios.
“EMKT will feature both stocks in its top 10 holdings.”
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