licensees will now have access to two new ETFs.
Van Eck Australia has announced two of its ETFs are now approved for AMP licensees, including AMP FP, Charter FP and Hillross. Licensees will now have access to the Market Vectors Australia Equal Weight ETF and Market Vectors Australian Banks ETF.
“We are delighted that AMP has added MVW and MVB to its APL. Our ETFs offer investors a point of difference and are gaining strong traction among financial advisers and SMSFs. For example, MVW, which currently equally weights 71 Australian securities avoids stock concentration in the Australian market,” Van Eck Australia director of institutions and intermediaries Matthew McKinnon.
McKinnon said there had been increasing demand from advisers for the 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. Since its launch on 4 March 2014, MVW outperformed the S&P/ASX 200 Accumulation Index by 3.97% per annum (at 31 August 2015), returning 5.85% per annum,” McKinnon said.
“Similarly, MVB provides investors with something they haven’t had before – a portfolio that invests only in Australian banks. MVB does not have other financials such as insurers. MVB delivers the growth and yield of Australia’s seven largest banks, with the holdings capped at 20% 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," he added.