Zenith Investment Partners has awarded “recommended’ ratings to three of VanEck’s exchange trade funds (ETFs): the VanEck Vectors Morningstar Wide Moat ETF (MOAT), VanEck Vectors FTSE Global Infrastructure (Hedged) ETF (IFRA) and VanEck Vectors Australian Property ETF (MVA).
Zenith praised MOAT for being a “compelling option for investors to gain exposure to US equities” while MVA earned its recognition due to a “significant down-weighting of exposure to the retail property sector” and its methodology which “reduces exposure to smaller cap stocks in order to maintain volatility”.
As far as IFRA was concerned, Zenith said: “the sector capping results in a more balanced sector diversification compared to many existing infrastructure indices”.
VanEck Australia’s managing director, Arian Neiron, said: “We are delighted to receive ‘recommended’ ratings from Zenith for these three ETFs.
“The ratings are a testament to each funds’ ability to achieve its target investment objective.
“MOAT provides investors with exposure to attractively price companies with sustainable competitive advantages according to Morningstar’s equity research team. IFRA invests in a broad basket of infrastructure securities listed on exchanges in developed markets around the world while MVA invests in a diversified portfolio of ASX-listed property securities with reduced concentration risk in the retail sector.”
VanEck Australia, which managed to attract over $1 billion in funds under management (FUM) across its range of equity and fixed income ETFs, said that altogether now five of its 14 ETFs had received a ‘recommended’ rating from Zenith.
The other two funds recognised by Zenith were the VanEck Vectors Australian Equal Weight ETF (MVW) and VanEck Vectors MSCI World ex Australia Quality ETF.
“VanEck benefits from access to the broader investment team, infrastructure and risk management systems and resources of the US-based operations (seven portfolio manager/ analysts and a trader),” Zenith said in its report.
“Zenith views the backing of the US operations for the Australian business as a strong positive, adding to the solid capabilities of the Australian operation.”
