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VanEck Vectors Australian Equal Weight ETF

Fund Manager: VanEck
Inception Date: Mar 01, 2014

We first took a look at the ETFs which had the highest inflows for the financial year this time last year. With the end of financial year long behind us, it’s time to take another look and see if there were any changes from last year. One of the unique attributes of Exchange Traded Funds (ETFs) and one which they share with managed funds, is their ability to create new units. This means that theoretically there is no limit to the size that an ETF can get to. Below we have a look at whic ... [More]

Weighing up Equal Weight ETFs

ETF Watch - Apr 19, 2017

Critics of ETFs often cite the use of traditional market weighted indexes as benchmarks as one of the key flaws of index investing. The critic will say that by investing purely by market capitalisation, the investor is buying more overvalued stocks and less undervalued stocks, as a result should expect mediocre returns. Australia’s concentrated finance sector adds further weight to the critics arguments, with the big 4 banks making up over 26% of the entire index weighting, reducing the di ... [More]

VanEck today announced that research house Zenith Partners has awarded a ‘Recommended’ rating to its VanEck Vectors Australian Equal Weight ETF (ASX:MVW) and VanEck Vectors MSCI World ex Australia Quality ETF (ASX:QUAL). Arian Neiron, Managing Director VanEck Australia, said, “We are delighted to receive a ‘Recommended’ rating from Zenith for two of our smart beta ETFs. The ratings are a testament to each funds’ ability to achieve its target investment objective. MVW provides investors with unique exposure to the Australian share market by providing an equal weight approach. QUAL provides exposure to quality international equities identified by three key fundamental factors: high return on equity; stable year-on-year earnings growth; and low financial leverage,” Mr Neiron said. According to Zenith, “The equal weight methodology employed by MVW creates balanced exposure, removing all biases to stocks by weight of market cap,” the report said. “Given the inherent concentrations in the Australian equities market, Zenith believes that exposure to an index which uses a simple mechanism to re-weight capitalisation exposure will find appeal to those seeking compromise between cost and diversification,” the report said. [More]

If there’s one common theme that comes through in the argument against index investing in Australia, it’s the high weighting of the flagship S&P/ASX200 index to just a few companies, specifically banks and miners, limiting the usefulness of index investing for diversification benefits. This means whilst invested in the top 200 Australian companies, investor’s returns are highly correlated to the fortunes of a few companies whose own performances are highly correlated to eac ... [More]

A case for equal weight ETFs: Vaneck

Money Management - Sep 26, 2016

Investors are increasingly turning to equal weight exchange traded funds (ETFs) for diversification as just 10 companies make up 50 per cent of the ASX 200 index, VanEck Australia said.  VanEck Australia's director of investments and strategy, Russel Chesler, said equal weight ETFs were a form of smart beta investing and generated outperformance.   Equal weight ETFs literally equally weighed all securities in a portfolio, so that reduced investor's concentration risk, both at a company and sector level, he said.  [More]

One of the unique attributes of Exchange Traded Funds (ETFs) and one which they share with managed funds, is their ability to create new units. This means that theoretically there is no limit to the size that an ETF can get to. We thought it would be interesting to have a look at which ETFs had the highest net inflows last financial year to see where investors have been placing their money. The table below shows the top 20 ETFs by net inflows for the 2016 Financial Year. Note that this is sep ... [More]

Aussie equal weight ETF doubles FUM

Money Management - May 30, 2016

VanEck's broad share market exchange traded fund (ETF) has doubled its funds manger management (FUM) in six months, surpassing $125 million in assets, as investors flock to get returns from its outperformance, acccording to the fund manager. Over the last 12 months, VanEck's Australian equal weight ETF (MVW) had the best performance of all index-based ETFs, which tracked the broad Australian share market. It outperformed the S&P/ASX 200 accumulation index by 9.26 per cent and consistently outperformed it over three, six and 12 month periods. Related News: Pupelis replaces Kasian at Equity Trustees VanEck Australia, managing director, Arian Neiron, said the demand from self-managed superannuation funds (SMSF) investors, advisers and institutions resulted in MVW doubling its assets under management in the past six months. [More]

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 Code Old Name New Name MVA Market Vectors Australian Property ETF VanEck Vectors Australian Property ETF MVB M ... [More]

In our last post we looked at some of the Listed Investment Companies (LICs) that investors could use to smooth out periods of volatility like global share markets have experienced in the first few weeks of 2016. Today we’re going to look at 7 strategies that may help get through periods of volatility and some of the Exchange Traded Funds (ETFs) that utilise these strategies. 1. Equal Weight ETFs We touched on Equal Weight ETFs in our post Getting Smart about Beta. These are funds wh ... [More]

Record-breaking year predicted for ETFs

Professional Planner - Jan 15, 2016

The sharemarket’s shaky start in 2016, after falling for the past 11 months, is prompting a surge of investment in exchange traded products (ETPs) that may exceed $8 billion in 2016.  Low return expectations are prompting investors to seek low cost and transparent portfolios. Arian Neiron, Managing Director, Van Eck Australia, expects investment in ETPs this year will eclipse the past year’s growth. At 2015 year-end, investment in ETPs traded on the ASX stood at a record $21.34bn, up 42 per cent from $15.01bn a year earlier. “Market falls in the first weeks of 2016 have made front page news, highlighting investor fear. Exchange Traded Funds (ETFs) are a subset of ETPs.  ETF investors have always had the benefit of diversity that overcomes single company risk.  In Australia we have seen more investors seeking to diversify away from the large miners and banks that have led the market down. [More]

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