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AMP approves Market Vectors ETFs for licensees

AMP has approved two of Van Eck Australia's ETF funds for its dealer groups.

AMP Financial Planning, Charter Financial Planning and Hillross will now have access to Market Vectors' Australian Equal Weight ETF and Market Vectors' Australian Banks ETF.

"There has been increasing demand from financial advisers for our ETFs," Van Eck Australia director of institutions and intermediaries, Matthew McKinnon, said.

"There has been increasing demand from financial advisers for our ETFs. In particular, MVW has attracted advisers seeking greater diversification and long-term outperformance compared to traditional market capitalisation indices such as the S&P/ASX 200 Accumulation Index."

Mr McKinnon added that the MVB ETF provides investors with a portfolio that only invests in Australian banks.

"MVB delivers the growth and yield of Australia's seven largest banks, with the holdings capped at 20 per cent so one stock does not dominate. MVB is being used by investors seeking exposure to Australian banks in a simple, cheap and single-trade structure that removes the administration burden of corporate actions," Mr McKinnon said.

"ETFs can be used to gain targeted exposure for clients' portfolios at a lower cost than actively managed funds and with added benefits of transparency, intraday trading and liquidity. These traits are what make ETFs so appealing," he said.