The Australian exchange-traded fund (ETF) market is just shy of hitting the $200 billion mark, standing at some $195 billion in funds under management (FUM) as at April 2024.
InvestorDaily has collated some of the key ETF launches announced in the calendar year-to-date.
February
Kicking off February, VanEck launched Australia’s first global listed private credit ETF – the VanEck Global Listed Private Credit (AUD Hedged) ETF (ASX: LEND) – giving investors access to the “booming” private credit market that surged to US$1.6 trillion in 2023.
The asset class, VanEck noted at the time, has historically been the “domain” of institutional and high-net-worth investors who have the capacity to invest with limited liquidity and price discovery.
Later in the month, BlackRock announced three new ETFs among its product offerings to help investors access their preferred investment style in line with their broader objectives in a low-cost way.
The funds – iShares MSCI World ex Australia Momentum ETF (IMTM), iShares MSCI World ex Australia Value ETF (IVLU), and iShares MSCI World ex Australia Quality ETF (IQLT) – became available on Cboe in February and marked the inaugural iShares products listed on Cboe in Australia.
April
Following a slow month in March, with no funds launching or closing, Global X kicked off April by unveiling the Global X Artificial Intelligence ETF (ASX: GXAI) on the ASX, marking the first dedicated AI ETF launched in Australia.
GXAI, which tracks the Indxx Artificial Intelligence & Big Data Index, offers Australian investors exposure to innovation and growth in AI-related companies.
Following this, Franklin Templeton announced the launch of two active ETFs – the Franklin Australian Absolute Return Bond Fund (Managed Fund) (ASX: FRAR) and the Franklin Global Growth Fund (Managed Fund) (ASX: FRGG) – on the ASX.
According to the investment manager, the two funds will open new avenues for Australian investors to diversify their portfolios and gain access to global and domestic investment opportunities.
During April, Betashares also unveiled its new “Wealth Builder”, comprising two “moderately geared” ETFs – the Betashares Wealth Builder Australia 200 Geared Complex ETF and Betashares Wealth Builder Diversified All Growth Geared Complex ETF.
That same week, Russell Investments launched its first multi-strategy ETF in Australia – the Russell Investments Sustainable Global Opportunities Complex ETF (ASX: RGOS) – in response to a growing appetite for actively managed ETFs in Australia, alongside rising interest in investment solutions focused on the environment and sustainability.
Finally, JP Morgan Asset Management (JPMAM) listed its high conviction Global Select Equity Active ETF (JGLO) on the ASX, signifying the 12th active ETF the global asset manager has brought to Australia, and its 10th in the active equity ETF space.
May
On 1 May, Global X launched the Global X Gold Bullion ETF (ASX: GXLD), complimenting the firm’s flagship product, Global X Physical Gold (ASX: GOLD).
Namely, GXLD aims to replicate the movements in the Australian dollar price of gold, less the annual management fee, by investing in physical gold bullion bars – notably, the fund marks the lowest-cost, physical-backed gold ETF in the Australian market.
Soon after, Betashares dropped its Australian Major Bank Subordinated Bond ETF (BSUB) on the ASX, bringing its range of cash and fixed income ETFs to a total of 19 investment solutions.
BSUB provides intelligent exposure to a portfolio of high-quality Tier 2 floating rate subordinated bonds issued by the big four Australian banks.
In mid-May, Macquarie Asset Management joined the mix with the launch of two new systematic active ETFs – the Macquarie Core Australian Equity Active ETF (ASX: MQAE) and the Macquarie Core Global Equity Active ETF (ASX: MQEG).
Fidelity closed out the month by announcing the launch of three new funds and confirming that a fourth would kick off on 3 June.
The funds in question are Fidelity Australian High Conviction Fund, Fidelity Asia Fund, Fidelity India Fund, and Fidelity Global Future Leaders Fund, all of which are now available as actively managed ETFs via the ASX.
June
While still early in the month, June has already seen multiple ETF launches, including the Fidelity Australian High Conviction Fund last week.
Notably, Monochrome Asset Management announced the official launch of the Monochrome Bitcoin ETF (IBTC) on Cboe. Jeff Yew, the CEO of Monochrome, has asserted that this is Australia’s first ETF to hold bitcoin directly.
Previously, Global X claimed the “first to market” title for its Global X 21Shares Bitcoin ETF (Cboe: EBTC), insisting it is Australia’s only spot bitcoin ETF. However, according to Yew, the EBTC does not hold bitcoin directly, hence making Monochrome’s bitcoin ETF offering unique.
That same week, Global X ETFs launched the Global X US Infrastructure Development ETF (PAVE) on the ASX, designed to invest in companies that are expected to benefit from increased infrastructure investment in the US.
