Betashares has launched an exchange-traded fund (ETF) offering, providing investors with the opportunity to tap into a diversified portfolio of cash-flow-rich international companies.
The new Global Cash Flow Kings ETF, which will carry the Australian Securities Exchange (ASX) code CFLO, will track a diversified index of 200 global companies outside of Australia, specifically targeting those with regular cash flow and relatively low debt levels.
The ETF portfolio is comprised of a balanced blend of technology, energy, pharmaceuticals and consumer goods equities, with major holdings including tech giants Adobe and Microsoft, in addition to global digital payment providers American Express and Visa.
The fund is available to investors on the ASX now, with a management fee of 0.40 basis points.
Betashares chief executive Alex Vynokur acknowledged investors often used cash flow as a key metric for making investment decisions as companies demonstrating robust cash flow typically exceed market expectations.
“We believe that investing with a focus on cash flow is an intelligent approach offering the potential for outperformance versus traditional broad global equity benchmarks over time,” Vynokur said.
“In addition, because it will have similar sector and country weights to broad global equity benchmarks, our view is that CFLO can be considered as a compelling candidate for a core exposure to global equities.”
Betashares stated the index CFLO will track has outperformed the MSCI World ex-Australia Index by 2.31 per cent a year since May 2006.