VanEck unveils new growth ETF option | Australian Markets
VanEck has expanded its vary of sensible beta exchange traded funds (ETFs) accessible by way of the Australian Securities Exchange (ASX) with the launch of its VanEck MSCI International Growth ETF (GWTH).
Scheduled to start trading on the ASX on 28 August, the ETF leverages VanEck’s proprietary sensible beta strategy – underpinned by a “systematic, rules-based approach that targets outperformance” – and joins the fund supervisor’s present worldwide high quality, worth and small-cap choices.
GWTH enters the market at a time of growth dominance, outperforming worth stocks during the last decade in response to VanEck. The fund supervisor additionally mentioned the new ETF acts as a ‘democratiser’ and permits traders to capitalise on the robust efficiency of growth stocks with out partaking actively-managed merchandise.
“Investors have traditionally bolstered their risk-adjusted returns with allocations that focus on a specific sector, style, size or thematic,” Arian Neiron, CEO and Managing Director of VanEck Asia Pacific, mentioned.
“This is as a result of the highest-growth stocks are typically underrepresented in benchmarks. This manifested within the first half of 2025, the place the extremely seen NVIDIA, Apple and Microsoft mega-caps took a back seat to lesser-known stocks reminiscent of defence intelligence company Palantir Technologies (up 492% within the final 12 months) and cellular promoting platform AppLovin (up 417% within the final 12 months).
“GWTH will enable traders so as to add a devoted growth publicity to their portfolio, for passive charges. Importantly, the growth issue is a diversifier away from the over-held firms, with NVIDIA being the one ‘Magnificent 7’ company at the moment included within the portfolio. Minimal overlap between GWTH, the worldwide benchmark, and issue ETFs supplies additional diversification advantages.
“We undertook a complete analysis and portfolio engineering course of to work by shortcomings in world growth benchmarks. We noticed that the standard index usually led to diluted growth publicity and magnificence contamination, making it much less efficient for these looking for real growth issue returns.
“Our objective with GWTH was to develop a smart beta strategy that captured “pure” growth traits, and we imagine that a disciplined method to delivering growth publicity can overcome the type drift and capability challenges usually confronted by energetic managers on this phase.”
The launch of GWTH brings the overall quantity of VanEck ETFs accessible on the ASX to 46.
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