Betashares grows suite of global equity “building block” ETFs

Local exchange traded fund (ETF) specialist, Betashares, has expanded its range of core global equity “building blocks” designed to help Australian investors and financial advisers strengthen and diversify their portfolios.

The Betashares Global Shares Ex US ETF (EXUS), which is expected to launch on the Australian Securities Exchange (ASX) early next month, seeks to provide investors with the opportunity to reduce concentration risk and “rebalance” away from markets that are over-represented in global benchmarks via exposure to over 900 large and mid-cap companies based in 22 developed markets outside the United States and Australia.

Besides allowing investors to leverage untapped opportunities beyond such concentrated markets, the ETF also offers potential tax benefits for investors through foreign tax credits and dividend income in a tax-efficient format.

The Betashares FTSE Global Infrastructure Shares Currency Hedged ETF (TOLL), which launched on the ASX yesterday, delivers investors AUD-hedged access to a variety of global infrastructure companies across utilities, transportation, energy pipelines and telecommunications.

“Equity markets have become increasingly concentrated in recent years. These new ETFs give Australian investors more tools to broaden their portfolios and add resilience through exposure to assets that perform differently across market cycles,” Betashares chief executive, Alex Vynokur, said.

“At a time when equity market concentration is elevated in both US and Australian equities, EXUS will help investors address this overweight position in their portfolios, as well as offering the tax efficiency of investing in an Australian-domiciled ETF which holds shares directly.

“At the same time, TOLL provides exposure to global infrastructure companies delivering essential services that tend to remain in demand throughout the economic cycle. These businesses often possess pricing power and inflation-linked revenues, making them a valuable portfolio building block and an additional source of diversification.”

The two fund launches complement the recent additions to Betashares suite of “building block” ETFs, including the Betashares MSCI Emerging Markets Complex ETF and the Betashares Global Aggregate Bond Currency Hedged ETF.