BetaShares will be launching a range of low-cost diversified exchange-traded funds (ETFs) on the Australian Securities Exchange (ASX).
The new suite of ETFs, which will start trading on the ASX in December, is expected to provide the lowest management fees among diversified ETFs in Australia.
BetaShares chief executive Alex Vynokur said: “We’re excited to be able to offer a simpler way for Australians to access a well-rounded investment portfolio via a single investment. It’s widely agreed that asset allocation is a major contributing factor to investment returns, yet it is one of the most challenging decisions an investor faces, and one that requires ongoing attention.”
“We wanted to bring a solution to the ASX which would allow investors – regardless of age, experience or wealth – the ability to access a robustly constructed portfolio that simplifies the asset allocation process.”
The range will consist of four diversified ETFs providing varying allocations of growth assets versus defensive assets, and will use an “open construction approach”.
The allocations will range between 25 per cent growth to 75 per cent defensive and 90 per cent growth to 10 per cent defensive.
“The flexibility and potential uses for these funds is exceptionally broad,” Vynokur added.
“We have many enquiries from younger investors who don’t know where to start, parents who are seeking a solution that is simple to use and low cost so they can start investing for their children, and more sophisticated self-managed super fund investors who are looking for a low-cost solution for the core of their portfolios.
“For advisers, our diversified funds will provide low-cost diversified investment solutions that can be utilised either on or off-platform, depending on client needs.”
In July, BetaShares added to its product suite with the launch of an ETF that provided Australian investors with access to the United Kingdom equities market.
In the same month, it expanded its fixed income ETF offering with a new fund providing exposure to bonds issued by Australian state and federal governments.
