Van Eck Global’s ETF business Market Vectors is set to launch four new exchange traded funds on the Australian Securities Exchange to strengthen its Australian footprint.
The new products are sector focused and designed to track purpose-built pure-play indices specifically developed for Australian investors by Market Vectors Index Solutions (MVIS), the index business of Van Eck Global.
The Market Vectors Australian Bank ETF and Australian Emerging Resources ETF will be the first ASX-listed ETFs to offer exposure to Australian banks and small-cap energy and mining companies.
The Market Vectors Australian Resources ETF and Market Vectors Australian Property ETF will offer broad diversified exposure across Australian resources and property sectors. They will be free of the biases to large-cap companies that dominate traditional market capitalisation weighted indices.
Arian Neiron Market Vectors Australia managing director said: "Market Vectors is entering the Australian market place with innovative investment products that intelligently capture a desired market exposure and are priced competitively for all types of Australian investors."
Neiron said the ETFs will provide investors with targeted investment opportunities that offer a high level of transparency, liquidity and diversification.
The ETFs will provide investors with targeted investment opportunities that offer a high level of transparency, liquidity and diversification.
"FoFA and MySuper are going to be catalysts for growth with investors demanding greater choice, transparency and ease of trading at a lower cost," Neiron added.
Market Vectors Index Solutions CEO Lars Hamich said: "The company’s tailor-made indices would add value to the new ETFs that track them by giving a pure representation of a given market sector.
"To achieve pure-play exposure, our indices include all entities that generate at least 50% of their revenue or 50% of their assets from a particular sector of the economy," he added.
Market Vectors has more than $22 billion in assets under management in US with 60 ETF products.