The ETF will track the Market Vectors Australia Equal Weight Index, which currently gives an equal weighting of approximately 1.30 per cent to 77 Australian securities.
This includes large banks such as Commonwealth Bank and Westpac, large miners such as BHP Billiton and Rio Tinto, as well as smaller securities such as TPG Telecom and SEEK.
Market Vectors managing director Arian Neiron said MVW will provide investors with a diversified exposure to the Australian equity market and can be “used as the core of a portfolio seeking exposure to Australian equities”.
Mr Neiron said MVW will “remove the large capitalisation biases found in traditional market capitalisation Australian indices, such as the ASX Accumulation Index, where the top five securities account for almost 40 per cent and top 10 securities account for over 50 per cent of the Index”.
“Our in-depth analysis of the performance of the Market Vectors Australia Equal Weight Index over the last 10 years has demonstrated the potential for MVW to outperform traditional market capitalisation weighted indexes,” he said.
Market Vectors Index Solutions (MVIS) chief executive Lars Hamich said MVIS conducts a detailed analysis of ASX listed securities in order to determine their inclusion in the index.
“Our demanding liquidity screens and pure-play rules deliver a well-balanced and diversified index exposure,” said Mr Hamich.
“Our commitment to the best possible transparency is enhanced through easy-to-access index data on our website, a free service that enables investors to monitor the underlying index around the clock – a methodology that has been developed in response to a changing global investment landscape.”
