Asset manager VanEck has released two new exchange-traded funds (ETF) on the Australian Securities Exchange (ASX).
The VanEck Vectors FTSE Global Infrastructure (hedged) ETF (ASX code IFRA) will provide individuals with an avenue to invest in global listed infrastructure securities. The benchmark to be used for the new offering is the FTSE Developed Core Infrastructure 50/50 Index (Hedged A$).
Investors will also have access to the top 200 listed securities on the ASX that have distributed 100 per cent franked dividends over the past two years via the VanEck Vectors S&P/ASX Franked Dividend ETF (ASX code FDIV). The companies included in this index possess sustainable dividend policies as well. This offering will use the S&P/ASX Franked Dividend Index.
“The new ETFs have been created in response to increasing demand from Australian advisers and investors for greater choice, flexibility, transparency and cost-effectiveness when investing,” VanEck Australia managing director Arian Neiron said.
“IFRA meets the increasing demand for global infrastructure as investors continue to be attracted to its stable income and low correlation to traditional asset classes.
“We are excited to be the first to give Australian investors the opportunity to access a portfolio of global infrastructure securities via a single trade on ASX.”
Neiron added the FDIV was the only passive investment vehicle to exclusively include Australian companies that had paid dividends with 100 per cent of franking credits.
“Australian investors have a love affair with franking credits, particularly those who have a zero tax rate,” he said.
“There is nothing more gratifying than receiving a cheque from the Australian Tax Office.”''