Specialist wealth manager Betashares has launched four multi-asset diversified exchange-traded funds (ETF), with three focused on exposure to Australian and global equities and the fourth providing access to a spread of income-generating assets.
Three of the new offerings are multi-asset ETFs that will employ a mix of growth and defensive assets while charging a management fee of 0.19 per cent a year.
The Betashares Diversified High Growth ETF (ASX code DVHG) will have the highest level of growth assets at 90 per cent with 10 per cent defensive assets, and the Betashares Diversified Growth ETF (ASX code DVGR) will use a 75 per cent to 25 per cent balance.
The Betashares Diversified Balanced ETF (ASX code DVBA) will have the lowest level of growth assets at 60 per cent with 40 per cent defensive assets.
Each of these funds will use a passive blend of ETFs traded on the Australian Securities Exchange to provide exposure to Australian, developed-market and emerging-market equities, global listed infrastructure and Australian and global investment-grade bonds.
The fourth fund, the Betashares Diversified Credit Income ETF (ASX code DCRD), will use a blend of Betashares credit income ETFs to provide exposure to senior floating-rate Australian bank bonds, subordinated bonds issued by the major Australian banks and interest-rate-hedged Australian investment-grade corporate bonds.
The fund will pay monthly distributions and carry a management fee 0.22 per cent per annum.
The investment firm stated that following the changes to capital gains tax, the diversified ETFs would offer more tax-efficient outcomes compared to owning the underlying shares directly, while the credit income ETF is being launched as investment-grade credit is offering yields well above levels seen in the past decade.
It also noted there was an increase in popularity among investors and financial advisers for diversified ETFs, which remove the need to select, monitor and rebalance individual investments, and similar offerings had attracted more than $1.1 billion in net inflows in the year to date, growing to $10 billion in funds under management.
Betashares chief executive Alex Vynokur added: “Building a strong portfolio requires thoughtful asset allocation, disciplined rebalancing and a focus on costs. These funds bring all three together in a single, professionally constructed investment solution, delivered through the familiar and convenient structure of an ETF.”