VanEck has launched two exchange traded funds (ETF) with one providing exposure to the residential mortgage-backed securities market and the other granting access to the top 50 performing stocks in India.
The VanEck Australian RMBS (residential backed mortgage securities) ETF – trading under the Australian Securities Exchange (ASX) ticker RMBS, and the VanEck India Growth Leaders ETF trading under the ASX GRIN ticker, will both will listed on exchange on 24 April expanding the organisation’s suite of products to 46.
The manger stated the RMBS fund will access a market of fixed-income bonds backed by a pool of residential home loans, where payments of principal and interest are funded by underlying mortgages, that had typically been closed to retail investors.
VanEck Asia-Pacific chief executive Arian Neiron said RMBS investments had a track record for capital stability and higher risk-adjusted yields relative to cash and senior debt.
“Residential mortgage-backed securities are one of the fastest growing fixed income asset classes in Australia, reaching a record $59.2 billion of issuance in 2024,” he noted.
“Australian RMBS benefit from a long track record of stability supported by the price growth in the homes of borrowers and debtor resilience during economic downturns. Historically, investors in highly-rated Australian residential mortgage-backed securities have never experienced principal losses.”
The GRIN fund will provide investors with exposure to a portfolio of high-growth Indian companies and will track the MarketGrader India Growth Leaders 50 Index which uses Growth at a Reasonable Price analysis to find companies trading at a reasonable price.
According to Neiron India has carved out a niche in the global investment landscape which presented itself as an attractive off-shore investment option for ETFs.
“The key drivers include higher GDP (gross domestic product) growth supported by policy tailwinds, favourable demographics and a growing middle class and government-led initiatives fostering improved efficiency,” he added.
“Further, while many countries scramble to recalibrate in response to Trump’s shifting US trade policies, India’s relative detachment from global trade could help it weather shocks that may harm more trade-dependent economies.”