VanEck today launched Australia’s first global infrastructure ETF on the ASX giving investors access to infrastructure securities from around the world. VanEck Vectors FTSE Global Infrastructure (Hedged) ETF (ASX code: IFRA) tracks the FTSE Developed Core Infrastructure 50/50 Hedged into Australian dollars Index, the world’s leading diversified global infrastructure benchmark.
Arian Neiron, Managing Director, VanEck Australia said, “We are excited to be the first asset manager and ETF provider to give Australian investors the opportunity to access a portfolio of global infrastructure securities via the ASX. IFRA meets increasing investor demand for global infrastructure which has traditionally provided investors with stable incomes and low correlation to other asset classes,” he said.
IFRA tracks the FTSE Developed Core Infrastructure 50/50 Index hedged into Australian dollars giving investors exposure to a portfolio of infrastructure securities determined by FTSE Russell, one of the biggest index providers in the world. FTSE’s index benefits investors by adjusting the exposure to certain infrastructure sub-sectors over time, reducing the risk of concentration in any particular sub-sector or country.
The stocks in the portfolio held by IFRA are weighted according to three broad industry sectors:
. 50% Utilities
. 30% Transportation
. 20% mix of other sectors including pipelines, satellites and telecommunication towers.
Mr Neiron said, “The FTSE Index is transparent and rules-based ensuring sector targets which provide diversification and reduces concentration risk at both the sub-sector and stock level. This index has become the global infrastructure benchmark used by industry participants including asset consultants and asset managers and we are very pleased to be partnering with FTSE to offer this ETF to Australian investors seeking stable incomes and low correlation to traditional asset classes.”
Sudir Raju, Managing Director ETP Relationships, Asia, FTSE Russell, said, “We are delighted that VanEck Australia has selected one of FTSE Russell’s infrastructure indexes for its latest ETF. This listing is seen by many in the market as an innovative new step, as it is the first ETF globally to track the new FTSE Infrastructure 50/50 Index. Collaborating with VanEck Australia on this recent product launch further solidifies our commitment to the Australian investment marketplace.”
| Fund
|
ASX
code |
Features | Management Cost |
| VanEck Vectors FTSE Global Infrastructure (Hedged) ETF | IFRA | · The first global infrastructure ETF on ASX
· Aims to provide investment returns that replicate the performance of the FTSE Developed Core Infrastructure 50/50 Hedged into Australian dollars Index · The Index comprises securities in developed countries which provide exposure to core infrastructure businesses, namely transportation, energy and telecommunications, as defined by FTSE’s Industry Classification Benchmark · The index sector allocations are as follows: o 50% Utilities o 30% Transport o 20% Other · Individual company exposure is capped at 5% · All the benefits of ETFs including: o Simple trading on the ASX o Liquid o Transparent daily holdings o Cost effective |
0.52% p.a. |
