Adviser demand for exchange traded funds (ETF) has persuaded Macquarie Investment Lending to place them on its approved securities list.
Macquarie now provides margin loan facilities to eight Barclays Global Investors (BGI) iShare index funds launched in Australia earlier this month.
"During the past two years, we have noted increasing interest levels in index-based investments from advisers with whom we do business," Macquarie Investment Lending head of sales and marketing Peter van der Westhuyzen said.
"Combining indexing with a margin loan provides an effective way of leveraging the benefits of index performance whilst gaining potential tax efficiencies by borrowing to invest.
"Trading iShare funds now enables investors to expand their investment potential by adding global, regional or single-country exposure in just one trade."
iShares are traded on the Australian Securities Exchange in the same way as normal shares and provide exposure to a range of global indices, such as Japan, Europe, US and Far Eastern markets.
BGI has offered eight ETFs to the institutional and retail Australian markets and intends to expand that to around 35 by the end of next year.
According to BGI, the ETF market is worth about $800 billion with BGI holding market share of around 50 per cent.
