Money Management rounds up the most notable exchange-traded fund (ETF) launches over the past three months.
Demand for ETFs is only set to climb higher, with over one-third of financial advisers planning to lift their ETF allocation in the next 12 months, according to Adviser Ratings.
“ETFs will be the flavour of choice for most advisers in the next 12 months, with more than a third planning to lift their allocation,” the report stated.
In response, fund providers are meeting investor and adviser demand with a suite of new investment options on the market across a range of sectors. We take a look back on the most noteworthy ETF launches over the past three months.
April
The quarter commenced with Franklin Templeton announcing two new ETF products. The Franklin Australian Absolute Return Bond Fund (Managed Fund) offers investors a diversified portfolio of Australian and global fixed income securities. Meanwhile, the Franklin Global Growth Fund (Managed Fund) selects quality growth companies, providing a diversified portfolio underpinned by secular growth trends.
Betashares launched two ETFs in April that were described as Australia’s first “moderately geared” ETFs available on the ASX. The “wealth builder” range offers a gearing ratio approximately between 30 per cent and 40 per cent on a given day.
Rounding off the month, the Russell Investments Sustainable Global Opportunities Complex ETF was launched to provide investors access to an actively managed portfolio of international shares with a focus on ESG concerns.
May
In the month of May, Global X launched the Global X Gold Bullion ETF, which aims to replicate the movements in the Australian dollar price of gold, less the annual management fee, by investing in physical gold bullion bars.
Betashares also expanded its fixed income solutions with the Betashares Australian Major Bank Subordinated Debt ETF, offering investors exposure to a portfolio of high-quality tier 2 floating rate subordinated bonds issued by Australia’s big four banks.
Towards the end of May, Macquarie Asset Management launched two new systematic active ETFs, designed to provide exposure to an active equity strategy with a fee structure aligned to performance.
June
Last month began with Fidelity International’s four new active ETFs hitting the market. These were the Fidelity Global Future Leaders ETF, the Fidelity Asia ETF, the Fidelity India ETF, and the Fidelity Australian High Conviction ETF.
Moreover, BlackRock Australia announced the iShares MSCI Emerging Markets ex China ETF. It aims to offer Australian investors a higher allocation to the emerging markets universe outside of China, providing the opportunity for greater global diversification.
In the same week, BlackRock Australia introduced its iShares 15+ Year Australian Government Bond ETF and Lazard Asset Management launched its Global Listed Infrastructure Active ETF.
