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Market Vectors re-brands to VanEck and launches two new ETFs

Market Vectors has decided to adopt their parent brand VanEck for the branding of all of their ETFs and has launched 2 new ETFs, a Franked Dividend Focused option and Australia’s first ETF to focus on Global Infrastructure.

By ETF Watch - Apr 21, 2016

Market Vectors has decided to adopt their parent brand VanEck for the branding of all of their ETFs, with the brand “Market Vectors Investments Limited” to now be known as “VanEck Investments Limited”. From 2 May all funds will be known by their new name.

The below table shows the funds affected:

ASX CodeOld NameNew Name
MVAMarket Vectors Australian Property ETFVanEck Vectors Australian Property ETF
MVBMarket Vectors Australian Banks ETFVanEck Vectors Australian Banks ETF
MVEMarket Vectors Australian Emerging Resources ETFVanEck Vectors Australian Emerging Resources ETF
MVRMarket Vectors Australian Resources ETFVanEck Vectors Australian Resources ETF
MVSMarket Vectors Small Cap Dividend Players ETFVanEck Vectors Small Cap Dividend Players ETF
MVWMarket Vectors Australian Equal Weight ETFVanEck Vectors Australian Equal Weight ETF
QUALMarket Vectors MSCI World ex Australia Quality ETFVanEck Vectors MSCI World ex Australia Quality ETF

 

The ETF Watch Fund Database will soon be updated to reflect the new names of the funds.

Two new ETFs launched

More interesting to most will be the two new ETFs that are soon to be launched by VanEck:

  • IFRA – VanEck Vectors FTSE Global Infrastructure (Hedged) ETF
  • FDIV – Vaneck Vectors S&P/ASX Franked Dividend EFT

We take a look at each of the new listings below:

IFRA – VanEck Vectors FTSE Global Infrastructure (Hedged) ETF

This fund fills a gap in infrastructure ETFs, one that was highlighted in our low cost ETF portfolio post. Until now there have been no infrastructure ETFs available on the ASX. Given that infrastructure as a segment has some very unique characteristics, for an investor looking for diversity in their portfolio, it may well have its place. The fund will track the FTSE Developed Core Infrastructure 50/50 index, and be hedged to Australian dollars. Additional information about the index is available here. Management costs for the fund are 0.52% pa.

FDIV – VanEck Vectors S&P/ASX Franked Dividend ETF

This fund plays into a crowded space in Australia. With our obsession with dividends and our generous franking credit system, a number of dividend yield focused ETFs have popped up in recent years. We count 6 ETFs available on the ASX that focus on Dividend yield in the Australian market. The point of difference with this fund is a mandate to include only companies paying 100% franking credits on their dividends. Given this strict mandate, the pool of shares available for investment is much smaller, with the index that has been created to support this fund currently only comprising 30 companies. The weight of each sector is limited at 40% and the weight of any company is limited to 10%, presumably to ensure the index does not end up following 100% bank stocks.

When we analyse the 6 ETFs currently available on the ASX, of the 5 with 12 months or more history, the dividend yield ranges from 5.76% to 8.25% pa with a franked percentage of 54% – 69%. Assuming that this fund can keep its portfolio turnover low (and not realise capital gains), we’d expect to see a much higher franked percentage of dividends. As a result for an investor looking for an ETF with a desire for franked dividends, this may have its place in their portfolio, assuming they are comfortable with the added risk of a more concentrated portfolio. Management costs for this fund are 0.35% pa.

VanEck is yet to announce when these funds will be launched, but they’ll be added to the ETF Watch fund database as soon as they are available.

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