VanEck expands ETF range

VanEck ETF

VanEck will launch four ETF products following strong growth in the company’s assets under management over the past year.

VanEck has unveiled four new exchange-traded funds (ETF) that are expected to commence trading on the Australian Securities Exchange (ASX) in the coming weeks.

The ETF provider said the VanEck Vectors Global Healthcare Leaders ETF (ASX: HLTH), VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO), VanEck Vectors Morningstar World ex Australia Wide Moat ETF (ASX: GOAT) and VanEck Vectors Morningstar Australian Moat Income ETF (ASX: DVDY) were in the final stages of preparation and would be launched soon.

VanEck managing director Arian Neiron said the company was expanding its range of ETFs because of strong growth in its assets under management, which had risen by 46 per cent over the year to 31 July.

“We are launching these new products to meet the strong demand in Australia for low-cost rules-based investment products that can help investors achieve their long-term wealth objectives,” Neiron noted.

“Our new ETFs offer investors access to opportunities that they could not otherwise access, via intelligently designed and forward-looking index strategies that tap into structural changes rather than investing in themes or fads which may evaporate.”

He pointed out the new HLTH ETF would be unique compared to other ETFs in the global healthcare segment by providing access to a portfolio of companies selected for their growth and value attributes and not weighted only by size.

“HLTH offers the best of both active and passive management, that is, ‘smart beta’,” he added.

“ESPO, as another example, is tapping into the dramatic rise of video gaming and e-sports, a structural phenomenon which COVID-19 is accentuating and accelerating.

“In Australia it will also be unique, the only ETF to focus on investing in the largest pure-play video gaming and e-sport companies globally, allowing investors to tap into the mega trend of technology, but diversify away from the FAANGs (United States tech giants).”

In January, the company launched its first active ETF in Australia offering access to emerging market  bonds, the VanEck Emerging Income Opportunities Active ETF.

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