Market Vectors has listed a new Australian Equal Weight ETF on the ASX today, giving investors increased exposure to Australia’s most successful companies.
The exchange traded fund business of Van Eck Global said the new fund – which is the first of its kind in Australia – currently holds 77 large-, mid- and small-cap ASX securities, all of which are equally weighted at approximately 1.30 per cent.
“Our Australian Equal Weight ETF provides investors with something they haven’t had before – the opportunity to invest equally in some of Australia’s most successful companies, from big to small, in one transaction on the ASX,” said Market Vectors Australia's managing director Arian Neiron.
“Many Australian share investors do not have exposure to mid- and small-cap companies in their portfolios because traditional indices and broad-based unlisted managed funds invariably focus on a few big companies, resulting in a large-cap bias and increased concentration.”
The fund will trade under the ticker code MVW and tracks a purpose-built index, the Market Vectors Australia Equal Weight Index, which has been developed to reduce concentration risk.
“Investors will be attracted by the ease of diversifying their portfolios across many different companies, without having to pick the stocks themselves,” Mr Neiron said.
“We particularly expect strong demand from SMSFs.”
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