ASX ETFs are becoming an increasingly popular investment class, particularly for young Australians.
A recent report from the AFR said the Australian ETF market could grow to $380 billion in FUM in 2026.
This is up from about $320 billion last year and just $71 billion in 2020.
The ASX held only about 220 ETFs as recently as 2020, and just 19 in December 2008. However, this number is now expected to surpass 500 by the end of the year.
This week, investors will welcome three new ASX ETFs from VanEck.
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VanEck fund overviews
The three new funds set to hit the market on Thursday, April 30, will operate under the names:
- VanEck Core+ Diversified Balanced Active ETF (ASX: VBAL). This fund aims to provide a steady core for long-term investors who value resilience as much as return
- VanEck Core+ Diversified Growth Active ETF (ASX: VGRO). This fund has a higher allocation to growth assets, with modest defensive allocation providing ballast during market stress
- VanEck Core+ Diversified High Growth Active ETF (ASX: VHGR). This fund aims for maximum exposure to growth assets for long-term capital accumulation, while accepting a higher degree of market variability
As the names suggest, these will focus on three risk categories: Balanced (VBAL), Growth (VGRO), and High Growth (VHGR).
All funds come with a 0.39% p.a. management fee.
Focus on diversification
VanEck said its investment philosophy is underpinned by the belief that markets provide investors opportunities for superior performance, by exploiting market inefficiencies, managing risk, or accessing new opportunities.
Each of our funds has been carefully constructed to achieve an investment outcome, empowering investors to take advantage of targeted market opportunities. Now, we have utilised our expertise to build ETFs of ETFs that we think investors can use to be the foundation for their investing future.
The ETF provider said the problem with most existing diversified funds is that they are not effectively diversified.
VanEck's Core+ Diversified Series aims to change that. Built on over six decades of global investment intelligence and powered by VanEck's Multi Asset Solutions team, these three ASX-listed strategies give Australian investors and advisers access to institutional-grade portfolio architecture that was previously out of reach.
For our clients, we think this is the upgrade they have been waiting for: a sophisticated, transparent core that complements model portfolio capability, challenges the active manager status quo and gives clients the confidence that their portfolio is genuinely working harder.
