VanEck enters new horizon of growth and expands ETF range
March 2021
VanEck is expanding its range of smart beta ETFs (exchange traded funds) with two new offerings.
Sydney, 02 March 2021 – VanEck is expanding its range of smart beta ETFs (exchange traded funds) with two new offerings, to join its recently announced new Global Clean Energy ETF, as it experiences strong growth in its assets under management from investors pouring funds into its leading investment products.
The VanEck Vectors MSCI International Small Companies Quality ETF (ASX: QSML) and VanEck Vectors MSCI International Value ETF (VLUE) will, subject to final regulatory approval, will soon commence trading on ASX, along with the VanEck Vectors Global Clean Energy ETF (ASX: CLNE).
Arian Neiron, VanEck's Managing Director and Head of Asia Pacific, said: “VanEck will shortly have 28 ETFs listed on the ASX, up from 19 a year ago. These ETFs will leverage enduring investment theses and structural growth themes.
“Value, as an investment style, for example, has been performing well in recent months and could continue to do so when global economies recover from the COVID-19 pandemic and if we see reflation. VLUE will allow investors to add a value tilt to their portfolio, with 250 companies selected by MSCI based on its value factor for passive fees. Previously, investors could only gain exposure to the value factor through high fee non-transparent actively managed funds.
“Separately, QSML will give investors exposure to a diversified portfolio of international developed market small-cap quality growth companies with durable business models and sustainable competitive advantages. Many investors seek capital growth opportunities by investing in small companies such as those found in the S&P/ASX Small Ordinaries. The international opportunity is 20 times bigger with approximately 4,000 listed international small companies making up the benchmark, MSCI World ex Australia Small Cap Index,” Neiron said.
“However, not all of these companies are desirable from an investment perspective. QSML is an international equity smart beta strategy of approximately 150 international small companies selected by MSCI based on its quality factor, offering investors a portfolio of international small companies with strong balance sheets and stable earnings,” Neiron said.
QSML and VLUE will join the soon-to-list CLNE, which will track the S&P Global Clean Energy Index, which has delivered a one-year total return of 116.0% as of 29 January 2021 and is the world’s leading clean energy index.
“The demand for infinite clean, green, renewable energy and the inevitable transition away from scarce fossil fuels is a significant trend offering huge investment potential. CLNE will allow investors to leverage that trend in their portfolios,” Neiron said.
“These ETFs are helping to democratise investing so that all types of Australian investors can buy into asset classes previously only available to institutional investors. This will help draw even more funds into the ETF industry which is set to grow to over $100 billion this year,” said Neiron.
“With assets under management (AUM) having over 50%last year to 31 January 2021, VanEck has expanded its Australian team in recent months to strengthen engagement with investors, institutions and advisers. This year will bring further momentum in the move to ETFs as investors demand their money work harder to create wealth in the face of ultra-low interest rates.”
“VanEck is focused on providing premier investment solutions, with full transparency and an ability to target specific investment outcomes. Our new ETFs will appeal to investors seeking diverse and targeted investment strategies for their portfolios,” Neiron said.
ENDS
About VanEck
VanEck is one of the world’s largest issuers of ETFs (Exchange Traded Funds), managing in excess of $50 billion globally for individual and institutional investors. Founded in New York in 1955, VanEck is a pioneer in international investing and in gold funds, launching the first gold equities fund and the first gold ETF in the US.
In Australia, VanEck is the fastest growing ETF provider in the country and a leader in ‘smart beta’ investment strategies. We have 25 ETFs on ASX that focus on delivering superior performance through beyond-the-usual approaches and providing access to asset classes typically unavailable to Australian investors.
vaneck.com.au
General information only
VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’) is the responsible entity and issuer of the VanEck Vectors MSCI International Small Companies Quality ETF (ASX: QSML), VanEck Vectors MSCI International Value ETF (VLUE) and VanEck Vectors Global Clean Energy ETF (ASX: CLNE) (‘the Funds’). Units in the Funds are not currently available. A PDS has been lodged with ASIC. The PDS will be made available at www.vaneck.com.au prior to the commencement of trading on ASX. Investors should consider the PDS in deciding whether to acquire units in the Fund. This information is general in nature and not financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision investors should read the PDS, and with the assistance of a financial adviser consider if it is appropriate for their circumstances.
1https://www.spglobal.com/spdji/en/indices/esg/sp-global-clean-energy-index/#overview/