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Two new ETFs from BetaShares

betashares etf

Investors will have new access to both the online retail and e-commerce sector, and the fixed income asset class after the release of two new ETFs.

BetaShares has released two new exchange-traded funds (ETF) into the market targeting the online retail and fixed income sectors for investors.

The first new offering, the BetaShares Online Retail and E-Commerce ETF, trading under the Australian Securities Exchange (ASX) ticker IBUY, has been designed to provide exposure to nearly 100 leading global e-commerce companies that have significant positions as online retail businesses.

IBUY’s index will cover large-scale e-commerce firms, including Amazon, PayPal, eBay, Tencent and Alibaba, and specialist firms such as Airbnb, Spotify and Hello Fresh, which are all required to derive at least 65 per cent of revenues from online travel, retail or marketplaces to remain on the index.

BetaShares chief executive Alex Vynokur said consumers have altered how they buy goods and services following the progress within the e-commerce industry.

“IBUY will offer investors convenient access to a diversified portfolio of global online retailing leaders that are revolutionising the way consumers shop for goods and services,” Vynokur said.

The other new product will trade under the ASX ticker of OZBD and will track the Bloomberg Australian Enhanced Yield Composite Bond Index before fees and expenses.

Bonds held in its portfolio will be weighted on the basis of their risk-adjusted income potential rather than debt weighting. This methodology is expected to generate better returns for investors compared to products using the more popular AusBond Composite Index. In addition, OZBD will aim to maintain an overall duration and credit profile similar to the AusBond Composite Index.

Vynokur described the new ETF as providing a cost-effective and convenient way to invest in a portfolio made up of government and high-quality Australian corporate bonds.

“OZBD has been designed to be a core portfolio allocation for fixed income for Australian investors and their advisers. OZBD’s intelligent investment approach seeks to avoid the shortcomings of traditional debt-weighted indices and aims to provide higher returns,” he said.

“The fund’s focus on income is particularly pertinent in a rising yield environment.”

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