VanEck has bolstered its offering of exchange-traded funds (ETF) with the introduction of three currency-hedged versions of popular international equity strategies following demand from advisers and investors.
The VanEck MSCI International Small Companies Quality ETF (QHSM), VanEck MSCI International Value ETF (HVLU) and VanEck Morningstar Wide Moat ETF (MHOT) made their debut on the Australian Securities Exchange (ASX) today, with the investment vehicles specifically designed for international equity investors seeking protection against currency volatility by hedging to the Australian dollar.
QHSM and HVLU offer investors exposure to international small, large and mid-cap companies, while MOAT provides them with a diversified portfolio of United States companies with sustainable competitive advantages.
VanEck chief executive Arian Neiron said more investors were seeking international equity exposure within their portfolio and the decision to hedge those investments was becoming increasingly important.
“These new funds will provide investors with the opportunity to target return outcomes by managing their Australian dollar exposure with proven smart beta international equity strategies. 2022 and 2023 have both demonstrated to investors that being selective across the investment universe by employing systematic approaches has many advantages, including, but not limited to, targeting return outcomes, avoiding ‘junk’, improving transparency and cost-effectiveness,” Neiron said.
“In light of US equity valuations, particularly the S&P 500, investors are looking for hyper-selective strategies that consider fundamentals and improved risk-adjusted returns over the long term.
“In an environment of heightened uncertainty and with central banks looking close to reaching peak rates, both QSML and MOAT have outperformed their respective benchmarks over the last 12 months.”