Aussie ETF provider BetaShares on path to expansion
Aussie ETF provider BetaShares is to expand its global shares product suite via the launch a range of new international ETFs.
BetaShares writes that it will commence the roll out of the new series of funds by initially launching three new ETFs that will provide exposure to some of the fastest growing technology investment themes globally.
Three new products are expected to launch soon on the ASX: BetaShares Asia Technology Tigers ETF (ASIA); BetaShares Global Blockchain Innovators ETF (BLOK) and BetaShares Global Robotics and Artificial Intelligence ETF (RBTZ).
BetaShares writes that ASIA will be the first local ETF dedicated to providing exposure to the largest 50 Asian (ex-Japan) technology companies, including innovative powerhouses such as Alibaba, JD.com, Tencent and Baidu.
The firm writes that BLOK will be the first ETF in Australia dedicated to providing access to an index of global companies that are leading the way in the development, research or utilisation of blockchain technologies and RBTZ will provide exposure to the global Robotics and Artificial Intelligence sector – and will aim to track the performance of an index of companies involved in the production or use of robotics and automation products and services.
BetaShares CEO, Alex Vynokur (pictured), says: “These new funds will capture some of the most exciting growth stories in the world today, and significantly expand on the range of technology- oriented ETFs available on the ASX.”
The three funds are designed to complement BetaShares’ two existing technology exposures: the BetaShares NASDAQ 100 ETF (ASX: NDQ), and the BetaShares Global Cybersecurity ETF (ASX: HACK), which have gathered approximately AUD500 million in combined assets to date.
BetaShares is expecting the new products will be well received, noting continuing strong demand for international exposures from local investors.
According to the BetaShares 2018 half year ETF report, International Equities received AUD941 million of net inflows in the six months to 30 June, almost double the amount flowing to Australian Equities, which received AUD567 million.
“In recent years there’s been a noticeable trend of Australian investors turning their attention to investment opportunities outside of our local sharemarket, as growth prospects in Australia have become more limited.
“Traditional drivers of growth in the Australian economy, the resources and financials sectors, may not, by themselves, deliver the sorts of returns that most effectively underpin long term growth in Australian retirement portfolios. Hence, investing more globally has become so important.”
“A number of BetaShares ETFs, including the new funds we have just announced, allow Australian investors to invest globally in a transparent and cost-effective way, and with the same ease and convenience as buying a share on the ASX”, Vynokur says.
BetaShares plans to follow the technology-specific funds with a range of additional international equities ETFs in the near future.