Market Vectors, the exchange traded fund (ETF) branch of Van Eck Global, is launching a “first of its kind” ETF with an equal weight methodology, providing greater diversification across the market.
The new ETF is the first of its kind in Australia and Market Vectors Index Solutions (MVIS) chief executive Lars Hamich said it will provide simple and cost-effective access to ASX-listed companies in equal weight.
“Traditional indexes often don’t provide pure diversification across a given market,” Mr Hamich said. “The Market Vectors Australia Equal Weight Index is purpose-built to give investors pure exposure to the performance of the Australian economy.”
The index provides equal exposure to the largest mid- and small-cap ASX-listed securities.
The ETF will trade under the ticker code MVW and can be accessed via a single trade on the ASX.
Market Vectors Australia's managing director Arian Neiron believes the ETF will appeal to all investors, including SMSFs and advisers seeking diversified exposure to the equity market.
“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 eight indexes,” Mr Neiron said.
“Once launched, MVW will provide investors with more diversified broad-based exposure to the Australian equity market and can be used as the core of a portfolio seeking exposure to Australian equities.”
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