There are approximately 380 ASX ETFs available for investors to choose from at the time of writing.
ETF provider VanEck has just announced there will be a new ASX ETF added to the market.
The fund will be listed under the ticker ASX:GWTH.
According to the provider, growth has been a hot topic among international equity investors since the global financial crisis, as 'growth' companies outperformed 'value' companies after many decades of underperformance.
In broad terms, a growth stock is a business that analysts and investors anticipate will grow profit and revenue faster than the general market.
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What will this new ASX ETF track?
The new ETF will track the MSCI World ex Australia Growth Select Index.
According to VanEck, GWTH will invest in around 100 international companies that have been selected, according to MSCI, as being among the top companies based on:
- Long-term forward earnings-per-share (EPS) growth rate
- Short-term forward EPS growth rate
- Current internal growth rate
- Long-term historical EPS growth trend
- Long-term historical sales-per-share growth trend
Last Friday, Arian Neiron, CEO & Managing Director for VanEck Asia Pacific said:
We are pleased to announce that we are launching an international equity ETF that will target companies poised for rapid revenue and earnings expansion, or 'growth'.
In an Australian first, VanEck is offering investors a way to access a portfolio of international companies selected as being among the top companies based on five growth descriptors as measured by MSCI.
What will be included in the fund?
While a list of the 100 holdings making up the fund has not been announced, a media release from the provider said growth investing focuses on identifying companies poised for rapid revenue and earnings expansion. This can often be driven by innovation, market disruption or evolving consumer preferences.
The fund will also actively exclude Australian companies.
The release said the fund is a diversifier to the growth factor away from the over-held companies, with Nvidia Inc (NASDAQ: NVDA) being the only 'Magnificent-7' company currently included in the portfolio.
There has been no announcement on the specific date this fund will become available on the ASX.
