First Australian equity long short ETF leads the next evolution

VanEck will be listing the first Australian equity long short ETF on ASX on 23 January 2025. The VanEck Australian Long Short Complex ETF (ASX: ALFA) is an actively managed, high conviction, unconstrained Australian equity portfolio that targets long and short positions. 

ALFA represents an extension of VanEck’s brand, capabilities and track record. Globally, its history in active fund management dates back to the 1950s – a heritage that has transposed into the business’ ecosystem and philosophy. For over a decade, VanEck has leveraged a substantive quantitative platform to devise innovative smart beta ETF strategies in Australia across a range of asset classes – from equities to credit and fixed income, as well as being leaders in alternatives such as gold and digital assets.

ALFA’s investment approach utilises VanEck’s deep quantitative background and active capabilities. Led by a team of experienced portfolio managers with a unique combination of actuarial and quantitative qualifications, the fund leverages an active management framework that analyses tens of thousands of data points in real-time. The outcome of the process is that it identifies those companies that have a statistically significant probability of excess return and those that have a higher probability of underperforming. The resulting portfolio consists of long and short Australian equity positions that aim to outperform the S&P/ASX 200 over the medium to long-term.

Arian Neiron, VanEck CEO and Managing Director, Asia Pacific said: “The Australian equity market is littered with inefficiencies to exploit. It is hyper-concentrated, over-crowded and lacks persistent ‘factor’ dominance. With style, sector and size leadership proven to be highly idiosyncratic, this has presented an opportunity to exploit the market’s inefficiencies through a highly active approach in 2025 and beyond. 

“The launch of ALFA is timely given the complexities of the current investment climate. We saw last year that market swings and sector-level dispersion were more pronounced than ever, with shifting global growth expectations, geopolitical tensions and the evolving interest-rate environment impacting performance. This volatility is expected to persist into 2025. Meanwhile, style rotations and valuation gaps are presenting short-term opportunities in the Australian market that require adaptability that are not supported by traditional active funds but will complement core beta and smart beta approaches,” said Neiron.

VanEck has a history of harnessing technology-driven insights and advanced analysis to fuel investable opportunities. As the pioneer of smart beta ETFs across equities and fixed income on the ASX, VanEck developed single factor quality and value strategies as well as a multi-factor emerging markets equities, and higher-yielding Australian corporate bonds strategies as well as pioneering equal weight investing in Australia. These innovations have enabled investors to construct investment strategies with targeted outcomes.

“Recent and ongoing advances in technology and programmable learning have enabled us to identify a compelling new opportunity for the investing community. We think investment approaches such as the one ALFA offers are the portfolio construction tools of the future, and are positioned to deliver an all-weather solution for Australian equity investors seeking excess returns,” said Neiron.