In March, the group launched an unhedged global equities ETF that is priced in Australian dollars and listed solely on the Australian Securities Exchange (ASX).
Both ETFs provide local investors with exposure to approximately 350 international equities in sectors that are either unavailable or more difficult to access in the Australian marketplace, SSgA stated.
The ETFs track securities in the relevant hedged or unhedged version of the S&P Developed ex-Australia LargeMidCap AUD Indices, which include large and mid-capitalisation stocks from 25 developed countries, according to SSgA.
SSgA’s head of SPDR ETFs in Australia Amanda Skelly said the releases were a response to investor demand.
“There is certainly a loud and ongoing debate about the direction of the Australian dollar. But stripping away the noise, it is clear that for many investors who are trying to achieve diversification, it is challenging enough without the added complexity of guessing where the currency is heading,” Ms Skelly stated.
“What is also clear is that the value of the Aussie dollar relative to other currencies, like the US dollar, has historically been very volatile and this can have a significant impact on the value of an investor’s international investment.”
Ms Skelly said recent ASX inflow data shows investors are now seeking to reduce the local bias in their portfolios and turning to international equity ETFs.
