The ETF market is ending the year with a flourish, with Schroders launching an income ETF, BetaShares launching a range of four diversified ETFs and SelfWealth benchmarking top performing SMSFs to come up with a share portfolio.
Schroders is launching its ETF on the Chi-X exchange. It is an active fixed income fund, designed to form part of an investor’s defensive allocation.
The fund (exchange code: PAYS) provides exposure to the unlisted Schroders Absolute Return Income Fund, which pays monthly income.
BetaShares has launched high growth, growth, balanced and conservative income ETFs, designed to provide an all-in-one investment product at low cost.
Each ETF has a diversified portfolio of shares, property securities, bonds and cash, with holdings in Australian and global markets.
BetaShares chief executive Aex Vynokur says the ETFs will be the first diversified ETFs in Australia to use an “open construction approach”, accessing assets classes by ETFs managed by BetaShares and other managers and including ETFs listed locally and overseas.
Vynokur says the open construction approach is designed to ensure that the funds ate cost-effective and use the most optimal underlying investment tools.
The high growth portfolio will have 90 per cent growth assets and 10 per cent defensive; the grwth ETF will have 70 per cent growth and 30 per cent defensive; the balanced ETf will have 50 per cent growth and 50 per cent defensive; and the conservative income ETF will have 25 per cent growth and 75 per cent defensive.
Earlier this month, online broker SelfWealth launched an ETF that tracks the performance of the SelfWealth SMSF Leaders Index.
Claiming a world first, SelfWealth analyses the sare portfolios of 80,000 SMSFs, using data supplied by administration provider BGL. Each quarter it selects the top 10 per cent of performers and picks out the stocks they are most heavily invested in. Stocks outside the S&P/ASX 200 are excluded.
The stocks are equally weighted and the portfolio is rebalanced quarterly.