There are plenty of well-established, index tracking ASX ETFs.
In Australia, funds like Vanguard Australian Shares Index ETF (ASX: VAS) and iShares Core S&P/ASX 200 ETF (ASX: IOZ) track the biggest companies domestically.
Additionally, there are similar funds to track US blue-chips.
However, there have been plenty of new funds hitting the market this year as providers try to focus on niche sectors and themes.
At the end of October, Betashares dropped its newest fund.
The fund is the FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL).
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ASX ETF overview
According to Betashares, the fund aims to track the performance of an index (before fees and expenses) that provides exposure to infrastructure companies from developed countries, hedged into Australian dollars.
It is currently made up of 135 holdings.
The provider said 50% of the portfolio is invested in utilities, 30% in transportation companies and 20% in infrastructure REITs, energy pipelines and telecommunications.
Infrastructure companies provide capital-intensive essential services that tend to be in consistent demand across the economic cycle. As a result, they typically enjoy strong market positions and pricing power, making them a useful portfolio building block. Low historical correlations with global equities mean an allocation to global infrastructure can also contribute to portfolio diversification.
According to the provider, the companies that this fund invests in tend to generate stable, long-term cash flows that are often linked to inflation.
It aims to generate attractive quarterly income, funded by the dividends paid by the companies in the portfolio.
It has a 12 month trailing dividend yield of 3.2%.
Geographically, its largest exposure is to companies in:
- United States (59.0%)
- Canada (10.8%)
- Australia (6.2%)
- Spain (5.7%)
- Britain (4.2%)
The fund is currency-hedged to AUD. This means the fund seeks to neutralise fluctuations in foreign currencies vs the Australian dollar. That means investors hold a "global infrastructure" exposure but with reduced foreign-exchange risk.
How has it performed?
This ASX ETF has only been listed for roughly one month so far.
However, it is up 1.26% in that span.
The fund may be ideal for investors wanting global infrastructure exposure without currency risk.
It is worth mentioning there are some funds already listed on the ASX that may be directly competing with this Betashares ETF.
For example:
- Vanguard Global Infrastructure Index ETF (ASX: VBLD) – This fund offers exposure to infrastructure sectors, including transportation, energy and telecommunications. The ETF is exposed to the fluctuating values of foreign currencies.
- VanEck Ftse Global Infrastructure (Hedged) ETF (ASX: IFRA) – Also gives investors exposure to a diversified portfolio of infrastructure securities listed on exchanges in developed markets around the world.
