Who offers ETFs in Australia?

When you want diversification in one trade and comparatively lower fees than actively managed funds, ETFs may be an investment worth discussing with your financial adviser. So who offers them in Australia? Here’s a rundown of the main providers.

Exchange traded funds, or ETFs, are pooled investment products designed to track an index through a carefully selected portfolio of securities. As their name suggests, ETFs can be traded on a stock exchange like shares.

ETFs are considered by ASIC to be complex financial products. Some are more complex and risky than others. For more information on ETFs and risks associated with them, see ASIC’s Moneysmart website at https://www.moneysmart.gov.au/investing/complex-investments/exchange-traded-products

These are the providers of ETFs* currently (as at November 2015) listed on the Australian Securities Exchange (ASX):

ETF Providers in Australia

BetaShares Capital:

An Australian manager of ETFs, covering Australian and international equities, cash, currencies, commodities and alternative strategies. BetaShares is a member of one of Asia’s largest asset management firms, the Mirae Asset Global Investments Group. Offers 12 ETFs covering Australian equities, international equities, currencies and commodities exposures. Total funds under management of $1.854 billion in 2015, making them the fourth largest ETF issuer in Australia (source: Stockspot).

BlackRock Investment Management (iShares):

Large global investment firm with over 120 investment teams in more than 30 countries. Their iShares range of products includes 28 different ETFs over three exposures – fixed income & cash, Australian equities and international equities. Total funds under management of $6.649 billion in 2015 (a 75% increase over the last 12 months), making them the largest ETF issuer in Australia (source: Stockspot).

ETF Securities Limited:

Global investment firm offering a comprehensive range of specialist exchange traded products. They consider themselves to be pioneers in specialist investments, having launched the world’s first gold exchange traded commodity. They dominate the commodities ETF sector with over 80% of funds under management – the rest shared between Perth Mint Gold and BetaShares. However, most of their commodities offerings are Structured Products, rather than physically backed ETFs, meaning they hold financial contracts instead of the physical underlying commodities. In total, they offer 20 ETFs (including their joint venture ETFs with ANZ, and Structured Products) specialising in commodities, currency, Australian equities and international equities. Total funds under management of $492 million in 2015 (source: Stockspot).

Gold Corporation (Perth Mint):

Precious metal provider trading as The Perth Mint. Has an ETF that tracks the price of gold. Unlike many gold ETFs, Perth Mint Gold’s ETFs can be physically redeemed for any of The Perth Mint’s bullion coins and bars. They are one of the smallest providers, with total funds under management of $56 million in 2015(source: Stockspot).

Van Eck Australia (Market Vectors):

Van Eck Australia – a subsidiary of the New York-based Van Eck Global. Their Market Vectors range of ETFs includes 10 different products specialising in Australian equities, international equities, and one in international commodities (gold miners). Total funds under management of $115 million in 2015, a whopping 685% increase over the last 12 months (source: Stockspot).

Russell Investment Management:

Global investment firm with offices in Sydney and Melbourne. Has around 1,800 associates working for them in 21 offices worldwide. Offers six different ETFs on the ASX covering two exposures – Australian equities (including a responsible investment ETF) and fixed income & cash. Total funds under management of $610 million in 2015 (source: Stockspot).

State Street Global Advisors (SPDR):

Investment management arm of State Street Corporation – an American global financial services holding company, with an office of 600 employees in Sydney. Offers 16 ETFs on the ASX under the SPDR (spider) product range covering Australian equities, international equities and fixed income & cash. Total funds under management of $4.291 billion in 2015, making them the second largest issuer in Australia (source: Stockspot).

UBS:

Global wealth management firm with approximately 90 employees in Australia. They offer 11 different ETFs covering fixed income & cash, and Australian and international equities. UBS are a major provider of “ethical” ETFs, offering six different funds which deliberately exclude tobacco and ‘controversial weapons’ out of their portfolios. Total funds under management of $179 million in 2015, (source: Stockspot).

Vanguard Investments Australia:

Global investment firm headquartered in Pennsylvania (USA) with more than 14,200 employees worldwide. Offers 12 different ETFs on the ASX covering Australian equities, international equities and fixed income & cash exposures. Total funds under management of $3.383 billion in 2015, making them the third largest issuer in Australia (source: Stockspot).

*Includes only products defined as ETFs according to the ASX naming conventions.  

Disclaimer

ETFs are considered by ASIC to be complex financial products. Some types of ETF are more complex and risky than others. For more information on ETFs and risks associated with them, see ASIC’s Moneysmart website at https://www.moneysmart.gov.au/investing/complex-investments/exchange-traded-products

Any information on this page is general and is not product advice. It has not taken into account your objectives, financial situation or needs. See our detailed disclosure.

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