Betashares will launch two global equity exchange-traded funds (ETF) that will track a broad index and be suitable for use as a core asset allocation in an investment portfolio.
The new funds – the Betashares Global Shares ETF (BGBL) and Betashares Global Shares Currency Hedged ETF (HGBL) – will aim to track an index with exposure to around 1500 global companies in more than 20 developed market countries, excluding Australia, with a management fee of 0.08 per cent a year for BGBL and 0.11 per cent a year for HGBL.
Betashares stated the new funds, when they commence trading on the Australian Securities Exchange in the next few weeks, will form part of its range of ETFs that can be used as a core allocation in a portfolio.
Currently, the listed investment manager offers five Australian equities products, seven international equities ETFs and three cash and fixed income funds in this range.
More Australian investors are using ETFs, according to Betashares, which noted Morningstar data for 2022 found Australian listed ETFs providing exposure to global equities received inflows of over $4.5 billion, while unlisted funds with the same exposure had outflows of over $5.4 billion.
At the same time, 32 per cent of Australian investors are using ETFs as the core of their portfolio, up from 4 per cent in 2019, according to the Betashares and Investment Trends “2022 ETF Report”.
Betashares chief executive Alex Vynokur said the firm had spent a decade building its range of investment strategies for retail and advised clients and the new funds “represent a thoughtful addition to our range of core exposures and demonstrates our commitment to maintaining our position as the home of ETFs in Australia”.
