Research house Lonsec has upgraded Market Vectors' property ETF product to “recommended” status, the provider has announced.
In a statement, Market Vectors – which is the exchange-traded fund (ETF) business of Van Eck Global – said its Australian Property ETF (MVA) had received the higher rating.
Director, intermediary and institutions, Matthew McKinnon suggested the fund was also the only ETF to have received a four-star rating from SQM Research.
“This upgrade from Lonsec is a further testament of the fund’s ability to deliver on its investment objectives,” he said.
That statement suggested investors in the fund gained exposure to a portfolio of 14 A-REITS.
According to the statement, Lonsec recommended the MVA due to its “use of a capped-weighted methodology, the ability to access the largest and most liquid Australian Real Estate Investment Trusts (A-REITs) with a single trade and the backing of the Van Eck Global group headquartered in New York”.
In addition, the statement said Lonsec’s report stated “by capping stocks at 10 per cent the fund improves diversification and prevents large retail property trusts from dominating the index”.
Mr McKinnon said the fund had already proven popular among investors.
“Since launching our first funds on the ASX in October 2013, we have seen strong demand for MVA from investors that are actively seeking income and capital growth from a more diversified portfolio of A-REITs,” he said.
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