VanEck reduces ETF fees

VanEck ETF fees

VanEck has reduced the management fees on a popular infrastructure and property fund by more than half after seeing increasing demand for them.

Global exchange-traded fund (ETF) provider VanEck will reduce the management fees early next month on two of its funds offered to the Australian market.

VanEck stated it would reduce the management fees on its FTSE Global Infrastructure (Hedged) ETF (Australian Securities Exchange (ASX) code IFRA) from 0.52 per cent to 0.2 per cent a year and from 0.53 per cent to 0.2 per cent a year for its FTSE International Property (Hedged) ETF (ASX code REIT), effective from 3 July.

VanEck Asia-Pacific chief executive Arian Neiron said the reduction is the result of a fee review and will enable more investors to access the funds after strong interest has been shown in them over the past year.

“Investor interest in our infrastructure and international property funds has been strong this year and it’s not surprising given the reliable income stream IFRA and REIT offer investors,” Neiron said.

IFRA provides access to a suite of global infrastructure companies, while REIT gives access to a diversified portfolio of international property securities from developed markets, excluding Australia. For both funds, VanEck adopts ‘taxation of financial arrangements’ currency hedging rules, which ensures stable income is received by investors.

“We are confident that the new fees encourage more investors and their advisers to consider IFRA and REIT as diversifiers for their portfolios,” Neiron said.

“We think these asset classes represent core exposures and these products are being used by investors as the market beta strategic asset allocation in portfolios.

“The new fees are consistent with our business objective of providing investors with opportunities to access the best investment outcomes.”

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