Six new exchange traded funds (ETFs) launched by ANZ ETFS, the new joint venture between Australia and New Zealand Banking Group (‘ANZ’) and ETF Securities, will begin trading on the Australian Securities Exchange (ASX) this morning.
The listings represent the first time one of Australia’s big four banks has entered the rapidly expanding domestic ETF market, which experienced its sixteenth consecutive month of growth in May to a total value of $18.6 billion, according to ASX figures.
“We believe these ETFs will resonate with Australian investors, particularly self-managed super funds looking for easy, cost-effective and diversified building blocks for their portfolios to help grow their wealth,” Danny Laidler, co-head ANZ ETFS and head of Distribution, said.
“Australian investors have embraced ETFs in the past few years, with the market growing by 62.5% over the past year to 31 May – clear proof that ETFs are growing in popularity,” Mr. Laidler said.
“We expect this number to increase as more investors discover the benefits of ETFs, which are traded on the ASX; offer access to often hard-to-reach investment options such as commodities, global equities and currencies; and importantly for many retail investors, cost a fraction of the fees of actively managed investments.”
ANZ ETFS has licensed three S&P Dow Jones Indices for its equity ETFs, including the ANZ ETFS S&P/ASX 100 ETF – the first ETF in Australia to track the S&P/ASX 100 index, which is made up of the 50 largest and 50 mid cap-sized companies in Australia, providing access to a range of listed Australian companies with one trade.
The other two equity ETFs offer access to high yield equities, which should particularly resonate with Australian investors while cash rates remain at historic lows.
The ANZ ETFS S&P/ASX 300 High Yield Plus ETF tracks a new index created by S&P Dow Jones Indices and ANZ ETFS, which represents Australian listed companies with the highest combined share buyback and dividend yields.
The ANZ ETFS S&P 500 High Yield Low Volatility ETF tracks an index previously unavailable in Australia. For the first time, Australian investors can gain exposure to high yielding US stocks with a volatility screen.
“As passive investment gains increased recognition in Australia, investors are eager to access new sources of return by employing various index-based strategies,” Daphne van der Oord, Head of Australia and New Zealand at S&P Dow Jones Indices, added. “By joining forces with ANZ ETFS, we can help Australian investors gain greater exposure to these income streams.”
The initial launch product suite is complemented by three physically backed ETFs including the ANZ ETFS Physical Gold ETF, which allows investors to add insurance to their portfolio, 100% backed by gold bullion stored at ANZ’s vault in Singapore. Investors gain cost- effective access to currency markets with the ANZ ETFS Physical US Dollar ETF and the ANZ ETFS Physical Renminbi ETF – the first Australian ETF to provide exposure to offshore Renminbi (CNH).
Peter Hiom, Deputy CEO of ASX, said: “We are delighted to welcome ANZ as the first domestic bank to issue ETFs in Australia through their joint venture with ETF
Securities. This represents a key milestone in the growth of the local ETF market. ASX is committed to supporting the development of an ‘investment supermarket’ to provide investors with a broad range of products to help diversify and strengthen their portfolios.”
The joint venture harnesses the securities expertise of ANZ’s Global Markets business, the strength of its Wealth and E*TRADE distribution channels and presence in 29 Asia-Pacific markets, together with ETF Securities’ global track record in developing innovative exchange traded products.
