VanEck releases new int equities ETFs

VanEck has listed three new Australian dollar (AUD) hedged international equities exchange traded funds (ETFs) on the Australian Securities Exchange (ASX), citing unprecedented demand from advisers and investors.

The VanEck MSCI International Small Companies Quality (AUD Hedged) ETF (QHSM), VanEck MSCI International Value (AUD Hedged) ETF (HVLU) and VanEck Morningstar Wide Moat (AUD Hedged) ETF (MHOT) are listed as of 9 November.

QSHM is a currency hedged version of the VanEck MSCI International Small Companies Quality ETF (QSML); HLVU is a currency hedged version of the VanEck MSCI International Value ETF (VLUE); and MHOT is a currency hedged version of the VanEck Morningstar Wide Moat ETF (MOAT).

“We’re seeing an increasing number of investors seeking out international exposures and growing the international allocation within portfolios,” Arian Neiron, VanEck CEO and Managing Director, Asia Pacific, said.

“As more money flows offshore, the currency hedging decision, which can depend on an investor’s risk profile and movement of the Australian dollar, is becoming increasingly important.”

The new funds will capitalise on the popularity of existing ETF international equity strategies and allows investors to manage their currency exposure as conditions oscillate alongside changing the market environment.

“These new funds will provide investors with the opportunity to target return outcomes by managing their Australian dollar exposure with proven smart beta international equity strategies,” Neiron said.

“2022 and 2023 have both demonstrated to investors that being selective across the investment universe by employing systematic approaches has many advantages including, but not limited to, targeting return outcomes, avoiding ‘junk’, improving transparency and cost effectiveness.

“In light of US equity valuations, particularly the S&P 500, investors are looking for hyper-selective strategies that considers fundamentals and improved risk-adjusted returns over the long term.

“In an environment of heightened uncertainty and with central banks looking close to reaching peak rates, both QSML and MOAT have outperformed their respective benchmarks over the last 12 months.”