InvestSMART Australian Exchange-Traded Product Quarterly Report - March 2018

The Australian ETP market has grown to $36bn as at March 2018. This is despite March posting the first negative month for FUM growth in 13 months. This quarter, we consider the ASIC framework for defining Active vs Passive funds and how to determine which ETF is right for you.

About this report

Welcome to InvestSMART’s March Quarter 2018 Australian Exchange-Traded Products (ETP) update.

Exchange Traded Funds (ETFs) form the basis of a range of InvestSMART’s Separately Managed Account (SMA) portfolios. The purpose of this report is to provide our clients with an easy to digest wrap of market activity as well as provide a greater level of insight into how and why we’ve built our SMA portfolios the way we have. 

ETFs are a low-cost, hassle-free way for investors to achieve their investment objectives. Whether your aim is to diversify your portfolio or to obtain exposure to a particular investment theme, the ability to buy ETFs directly on market, their low cost and transparency has seen the popularity of these securities amongst investors grow rapidly.

We have categorised the ETP market by asset class to allow members to quickly identify suitable securities to fill any investment gaps in their portfolio and remain aligned to their specific investment objectives.

Figure 1: Asset Classes
Asset ClassDescription
Commodities Exchange Traded Products (ETPs) that provide exposure to various Commodities & Natural Resources.
Currency Exchange Traded Products (ETPs) that provide exposure to various Currencies.
Diversified Exchange Traded Products (ETPs) that provide Diversified Multi Sector exposure
Equities Exchange Traded Products (ETPs) that provide exposure to Equity Markets.
Fixed Income & Cash Exchange Traded Products (ETPs) that provide exposure to Interest Rate securities and Cash.
Property & Infrastructure Exchange Traded Products (ETPs) that provide exposure to Domestic and Global Property and Infrastructure.

About InvestSMART

Founded in 1999, InvestSMART Group Limited (ASX:INV) believes everyone should have the confidence to control their financial future and it shouldn’t be hard or expensive to do so.

Whether you’re managing your own investments or looking for a little help, we deliver straightforward, flexible and affordable solutions to ensure you are better able to meet your investment goals.

Our three leading brands – InvestSMART, Eureka Report and Intelligent Investor – together offer actionable investment tools, wealth advice and independent ASX-listed stock research.

We’re all about making investing simple. Statistics show four in five Australians do not receive any professional investment advice, with cost the primary reason. We aim to change that.

Through our Portfolio Manager, stock research, wealth commentary and affordable investment products, we believe we are delivering the right tools to help all Australians grow and protect their wealth.

 

InvestSMART Star Rating

When reviewing an ETF there are some key quantifiable metrics common to every security. 

To save time in reviewing each and every ETF listed on the Australian Market, we have developed a Quantitative 5 Star Rating System that takes each of these items into account. It is reflective of the process we use to identify investments for our own SMA portfolios.

Figure 2: InvestSMART Star Rating Criteria
FactorDescription
Size Funds under management.
Fees Fund management fees as a percentage of FUM.
Liquidity Trading volumes.
Spread The average percentage difference between the bid & ask.
Tracking error The difference in the return profile of the Fund to its benchmark.

For our portfolios, we generally like to see a 4 to 5-star rating, as this implies the security rates well across each of the above-mentioned metrics. However, the star rating is best used as a filtering tool when comparing ETFs with the same objective. It does not make sense to compare a highly liquid, and hence low-cost S&P500 ETF to one designed to track the performance of emerging markets which are often less liquid and more expensive to access.

It should also be noted that the InvestSMART Star Rating is a quantitative measure and it does not take one’s investment objectives into account. The InvestSMART Star ratings do not constitute recommendations. Additionally, we do not rate Actively Managed Funds or Structured products, and this is denoted by an NR or “Not Rated”.

Figure 3: Number of ETFs per star rating
Star RatingNumber of ETFs
star 5 7
star 4 31
star 3 58
star 2 42
star 1 4
NA 34

Changes this Quarter

We encourage feedback from our members as it allows us to continually build more useful products. Following suggestions, this quarter we’ve made some changes to the report. These include:

  • Clearer distinctions between Active & Passive Funds
  • Greater level of detail in breaking down asset classes

Let us know what else you’d like to see in our quarterly report.  Contact us 

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An ASIC framework for defining Active vs Passive funds

Exchange Traded Products are those that include portfolio exposure securities that trade intra-day on an exchange. Broadly speaking, they can be categorised under two headers in reference to the portfolios management style, as either ‘active’ or ‘passive’.

As the market for listed funds continues to grow, ASIC has sought to clarify the naming conventions in its Information Sheet 230: Exchange traded products .

In simple terms, a passive fund seeks to replicate or track the performance of an index, specified combination of multiple indices, or other widely regarded benchmark, the value of which is continuously disclosed, or can be immediately determined .

An active fund is one that buy or sells investments based on an active investment strategy or where they seek to outperform a particular benchmark .

Figure 4: Categorisation of Exchange Traded Products (ETPs)

A grey area exists for Smart Beta products as they are somewhat of a Hybrid between active and passive management. So long as they seek to replicate or track the performance of an index, they can be referred to as an ETF.

As each type of product comes with varying levels of risk, we will adopt these conventions when referring to securities throughout our report to provide greater clarity to readers.

 

ETF Due Diligence

The Domestic ETF market is still quite small when we consider global exchanges, and the variety of options currently on offer is quite concentrated in regard to exposure. However, as the market matures, and more funds are listed, investors will need to be able to identify the differences between two similar ETFs. 

This month we dive deeper into the due diligence process and provide a framework for identifying the differences between across ETFs.

Note, this framework is applicable to analysing ETFs, that is passively managed funds that seek to track the performance of a given index and does not necessarily apply to actively managed products which generally require greater understanding of the portfolio manager, investment philosophy, track record etc.

 

Exposure

“Does the fund deliver the desired exposure”

After identifying the gaps in your current portfolio, the next step is to identify securities designed to provide exposure to them. 

ETFs are designed to track indices, so the quickest way to determine the exposure that an ETF will provide you is to understand its benchmark. Most ETFs will provide a rundown of the benchmark construction methodology within their PDS documentation and some key items to consider include:

Figure 5: Benchmark construction methodologies

Performance

“Evaluation of the ETFs performance”

Unlike an actively managed fund that is designed to provide returns in excess of their stated benchmark, ETFs are managed to track their chosen benchmark index. A well-managed ETF should track closely and how well the ETF tracks its benchmark can be monitored by two metrics.

The difference in returns of ETF to its Benchmark for a given period is referred to as the tracking difference. The tracking error refers to the volatility of the tracking difference and a lower tracking error suggests greater consistency in the difference.

You cannot invest in a benchmark index, that is why ETFs exist. However, doing so incurs costs and some reasons as to why an ETFs performance vary to its benchmark include:

  • Management fee
  • Tax
  • Transactional/rebalancing costs
  • Securities lending
  • Poor management

The lower the tracking difference and error the better when comparing two similar ETFs.

 

Structure

“How is the fund constructed”

Dependant on the underlying asset which the ETF is designed to track, the issuer can elect to construct the ETF in a variety of ways. The reasons as to why the issuer may choose to construct a fund in a certain way may come down to cost, liquidity, number of benchmark constituents & holding practicality.

PhysicalSynthetic
If an ETF has a physical construction methodology it physically holds the underlying securities. These ETFs use derivatives as a means of delivering returns in line with a given index and open an investor up to a range of risks that a physical ETF do not, for example counterparty risk.
Those funds that hold all the underlying securities are said to be fully replicating, while those that do not are classed as optimised or partially replicating. Some indices may comprise 000’s of securities and replicating them in full can prove costly. The most common reason an issuer may elect to construct a fund in this way is that physically holding the underlying security is impractible, in the case of many commodity ETFs.
An optimised or partially replicating ETF seeks to find the sweet spot between maintaining a low tracking error without incurring unnecessary transactional costs.  


Domicile

“Where is the fund domiciled, and how does that effect the investor” 

A number of Internationally focused ETFs are domiciled overseas or “cross-listed” meaning that for tax purposes they are not ‘Australian Residents’. 

For a cross listed ETF, the administrative burden at tax time is passed on to the investor. That is, each investor needs to fill out a W8-BEN form to be eligible for reduction in US withholding taxes from 30 to 15%. For an Australian Domiciled ETF investing in overseas securities, this only needs to be done once by the manager for the benefit of all investors.

There are two quick ways to determine if an ETF is cross listed:

  1. Instead of a PDS, the ETF is issued with a Prospectus
  2. The ASX refers to Internationally Domiciled securities as a “Chess-Depository-Interest” or CDI’s

When reviewing an ETF, you should identify where it is domiciled and understand the potential tax implications for you, and the effect this may have on the funds’ performance.

 

Liquidity

“Will I be able to buy or sell when I need to” 

A common concern investors’ have when reviewing an ETF is liquidity, or the ability to buy or sell when required. Unlike trading in equities, there are three levels to an ETFs liquidity.

Figure 7: The three levels of ETF liquidity

Understanding underlying liquidity 

As an example, SPDRs S&P/ASX 200 Fund is designed the track the S&P ASX 200. If SPDR needed to satisfy demand for a large order in excess of current units on screen and held by the market makers, a market maker would simply buy the constituent securities of the ETF on market and deliver them to SPDR. SPDR as issuer would then create new units and issue them to the Market Maker who would place them on market hence providing liquidity. This is a benefit of the open-ended structure of ETFs and the reason why price will track the funds NAV for the majority of the time.

 

Costs

“What is the total cost of ownership”

The cost of an ETF is more than just its quoted management fee. 

The other cost to consider when reviewing an ETF is the bid-offer spread. ETFs are designed to closely track the NAV of the underlying portfolio and this is done through the use of market makers. Market makers will place bids and offers either side of the NAV at a margin or “spread”.

This spread is designed to account for the transaction costs incurred in buying or selling the underlying portfolio constituents to account for money entering or exiting the fund so as not to disadvantage existing unit holders.

Generally, the less liquid the underlying securities in the ETF, the wider the spread will be. Other costs (or benefits) involved in running an ETF, such as rebalancing costs, taxes and securities lending revenue will be accounted for in the tracking difference.

Market Overview - Key Highlights

 

Market Overview - FUM

The Australian ETP market has grown to $36bn as at March 2018.  This is despite March posting the first negative month for FUM growth in 13 months. While net inflows were positive, negative equity market performance saw total FUM decline slightly.

 

Figure 8: Market GrowthFigure 9: % FUM Growth: Inflows vs Performance
Source: ASX

During the period BetaShares launched two new funds while VanEck issued one. This has taken the number of ETPs listed on the ASX to 176, up from 173 in December 2017. 

Figure 10: ETP Market breakdown by issuer. 
IssuerNo. Funds (Dec)No. Funds (Mar)FUM $m (Dec)FUM $m (Mar)Market Share
Blackrock 39 39 $10,431.83 $10,593.62 29.29%
Vanguard 22 22 $10,077.28 $10,229.50 28.28%
State Street 16 16 $5,691.77 $5,556.27 15.36%
Betashares 42 44 $4,527.69 $4,591.57 12.69%
Magellan 3 3 $1,189.27 $1,211.39 3.35%
VanEck 10 11 $969.78 $1,132.03 3.13%
Russell 6 6 $647.82 $641.83 1.77%
ETFS Securities 15 15 $889.28 $974.70 2.69%
Market Vectors 4 4 $445.87 $469.53 1.30%
UBS 9 9 $272.19 $269.67 0.77%
Platinum 2 2 $194.76 $275.15 0.76%
Switzer 1 1 $77.67 $75.60 0.21%
Montgomery 1 1 $62.58 $71.78 0.20%
Schroder 1 1 $45.25 $45.53 0.13%
K2 Asset Management 2 2 $36.89 $33.28 0.09%
  173 176 $35,559.93 $36,171.46 100.00%
Source: ASX and Morningstar
Figure 11: Australian ETF market breakdown
Asset ClassGeographyIssuer
The largest asset class in terms of both product range as well as FUM is equities, representing over 75% of the market. Geographically, the largest exposure for ETFs across the market is Australia, followed by those providing diversified global exposure. With combined FUM over $30 billion, close to 90% of the Australian ETFs market is managed by five issuers, namely BlackRock, Vanguard, State Street, BetaShares and Magellan.
Source: ASX and Morningstar

Two new actively managed funds from BetaShares were listed this quarter as well as a sustainable equity ETF from VanEck.

Figure 12: New ETP listings
SecurityFundAsset ClassFocus
EINC BetaShares Legg Mason Equity Income Fund Equities Actively-managed diversified portfolio of income-oriented Australian shares
RINC BetaShares Legg Mason Real Income Fund Property & Infrastructure Actively-managed diversified portfolio of ASX-listed securitiees holding real or "hard" physical assets.
ESGI VanEck Vectors MSCI Intl Sust Eq ETF Equities Diversified portfolio of sustainable international companies listed on exchanges in developed markets.
Source: ASX and Morningstar
 
Figure 13: Product Breakdown by structure

 

Market Overview - Flows

Fund flow is an interesting metric when analysing the ETP market as it provides insight to investor sentiment. Given the majority of ETPs are index tracking, that is they are designed to replicate the performance of a given market index or asset class, analysing flows gives an insight into trends in market sentiment toward a given asset class or thematic.

Overview

Figure 14: Quarterly Flows

Source: ASX

Global and Domestic large cap equity products saw the majority of inflows for the March Quarter and The Vanguard MSCI Index International ETF (VGS) saw the largest inflows for the quarter, at $120.7m. At a security level domestic property, as represented by the Vanguard Australian Property Securities Index ETF (VAP) saw the largest outflows due to poor performance in the sector.

In dollar terms, cumulative inflows to date currently exceed those seen at this point last year.

Figure 15 & 16
Cumulative FUM Flows ($m)FUM Flows ($m) by Asset Class

Source: ASX and Morningstar
Figure 17: Largest Inflows (Qtr)
ETFFlows ($m)Sub Category
[VGS] Vanguard MSCI Index Intl ETF 120.71 Equity World Large Blend
[STW] SPDR? S&P/ASX 200 ETF 95.43 Equity Australia Large Blend
[VEU] Venguard All-World ex-US Shares ETF 88.69 Equity World Large Blend
[PIXX] Platinum International {Quoted Mngd Hdg} 60.55 Equity World Large Blend
[VHY] Vanguard Australian Shares High Yld ETF 57.74 Equity Australia Large Blend
Source: ASX and Morningstar
Figure 18: Largest Outflows (Qtr)
ETFQtr Flows ($m)Sub Category
[VAP] Vanguard Australian Property Secs ETF -47.50 Equity Australia Real Estate
[QOZ] BetaShares FTSE RAFI Australia 200 ETF -41.91 Equity Australia Large Blend
[HVST] BetaShares Australian Div Harvester (mgd) -41.12 Equity Australia Large Value
[AAA] BetaShares Aus High Interest Cash ETF -23.24 Australian Cash
[QFN] BetaShares S&P/ASX200 Fincls Sect ETF -18.35 Equity Australia Other
Source: ASX and Morningstar

Market Overview - Performance

An ETF should closely track its underlying index. Unlike active fund mandates, negative returns do not necessarily mean the fund manager is doing a bad job, but rather reflects the performance of the underlying securities the ETF has been designed to track.

When reviewing an actively managed fund though, cost vs long term performance is an important metric to consider.

Overview

For the March quarter, global tech saw the best returns on average, while geared Australian equity saw standout negative returns. For the 12 months to date, Asian equities were the standout sector with ETPs exposed to the region returning in excess of 20%.

Figure 19 & 20: 3 & 12 month performance
3 Month Returns
12 Month Returns
 
Source: Morningstar
Figure 21: Top 5 performing securities
ETF3 Mnth ReturnSub Category
[BBOZ] BetaShares Australian Eqs Strong BearHdg 11.24% Alternative Strategies
[HACK] BetaShares Global Cybersecurity ETF 10.49% Equity Global Technology
[TECH] ETFS Morningstar Global Technology ETF 8.91% Equity Global Technology
[OOO] BetaShares Crude Oil ETF Ccy  Hdg (Synth) 8.02% Commodities & Precious Metals
[ITW] iShares MSCI Taiwan ETF 6.50% Equity World Other
Source: Morningstar
Figure 22: Worst 5 performing securities
ETF3 Mnth ReturnSub Category
[GEAR] BetaShares Geared Australian Equity (Hdg) -9.21% Equity Australia Large Geared
[RVL] Russell Inv Australian Value ETF -8.83% Equity Australia Large Value
[MVA] VanEck Vectors Australian Property ETF -7.27% Equity Australia Real Estate
[DIV] UBS IQ Morningstar Australia Div Yld ETF -6.98% Equity Australia Large Growth
[RDV] Russell Inv High Dividend Aus Shrs ETF -6.89% Equity Australia Large Value
Source: Morningstar

Securities Overview - Commodities

Focus: Securities designed to provide exposure to the performance of various commodities and natural resources.

We do not hold any Commodity focused ETFs in our SMA Portfolios.

CommoditiesFUM ($m)Qtr
Flows ($m)
No. of Funds
$ 759.00 $ 4.30 10
Source: ASX and Morningstar

Overview

Despite strong returns, BetaShares Crude Oil ETF (OOO) was the one ETP to see net outflows this quarter and in a reverse to the December quarter, BetaShares Currency Hedged Gold Bullion ETF (QAU) saw the highest net inflows for the sector. This is likely due to protectionist policy, US-China trade tensions and a run on in bond markets as inflation increased.

Figure 23: Funds Under Management ($m)Figure 24: Geographic Exposure
Figure 25: Flows ($m)Figure 26: Average Cost
Figure 27: Average Performance 
 
Source: ASX and Morningstar

 


Key Data: Commodity ETFs

Figure 28: Commodity ETFs
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
GLOBAL
Agriculture
[QAG] BetaShares Agriculture ETF CcyHgd(Synth) 3.17 0.90 0.69% 1.06% 15.24% 3.57% -7.15% 0.00% Annual ETF Miscellaneous star1
Diversified Commodities
[ETPMPM] ETFS Physical PM Basket ETC 5.04 0.00 0.44% 1.33% 0.80% 0.86% 3.55% 0.00% Semi-Annual SP Commodities & Precious Metals starNR
[QCB] BetaShares Com Basket ETF Ccy Hgd(Synth) 9.86 1.79 0.69% 0.90% 15.61% -0.79% 4.62% 0.00% Annual ETF Commodities & Precious Metals star1
Gold.
[GOLD] ETFS Physical Gold ETC 582.55 0.00 0.40% 0.16% 3.28% 4.46% 5.34% 0.00% Semi-Annual Share Commodities & Precious Metals starNR
[QAU] BetaShares Gold Bullion ETF Ccy Hedged 55.29 5.12 0.59% 0.42% 8.84% 1.71% 5.27% 0.00% Annual ETF Commodities & Precious Metals star2
[ZGOL] ETFS Physical Singapore Gold ETF 13.78 0.00 0.40% 0.29% 4.26% 4.02% 5.61% 0.00% Annual ETF Commodities & Precious Metals star2
Oil
[OOO] BetaShares Crude Oil ETF Ccy Hgd(Synth) 29.91 -4.99 0.69% 0.36% 14.27% 8.02% 22.67% 0.00% Annual ETF Commodities & Precious Metals star2
Palladium
[ETPMPD] ETFS Physical Palladium ETC 1.07 0.00 0.49% 1.42% 7.18% -6.54% 20.30% 0.00% Quarterly SP Commodities & Precious Metals starNR
Platinum
[ETPMPT] ETFS Physical Platinum ETC 1.20 0.00 0.49% 1.25% 4.67% 3.06% -1.45% 0.00% Quarterly SP Commodities & Precious Metals starNR
Silver
[ETPMAG] ETFS Physical Silver ETC 57.33 1.48 0.49% 0.77% 3.35% -1.69% -10.79% 0.00% Semi-Annual SP Commodities & Precious Metals starNR
Source: ASX and Morningstar

Securities Overview - Currency

Focus: Securities designed to track the performance of the Australian dollar relative to various currencies. 

We do not hold any Currency focussed ETFs in our SMA Portfolios.

CurrencyFUM ($m)Qtr
Flows ($m)
No. of Funds
$ 567.00 -$ 12.50 8
Source: ASX and Morningstar

Overview

The weakening AUD is likely due to the Federal Funds rate overtaking the official RBA cash rate for the first time in 19 years.

 

Figure 29: Funds Under Management ($m)Figure 30: Geographic Exposure
Figure 31: Flows ($m)Figure 32: Average Yield
Figure 33: Average CostFigure 34: Average Performance
Source: ASX and Morningstar 

 

Key Data: Currency ETFs

Figure 35: Currency ETFs
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
ASIA
RMB
[ZCNH] ETFS Physical Renminbi ETF 0.49 0.00 0.30% 0.21% 0.90% 5.98% 8.93% 0.00% Annual ETF Miscellaneous star2
EUROPE
EUR
[EEU] BetaShares Euro ETF 8.42 1.12 0.45% 0.15% 17.12% 4.31% 13.82% 0.00% Semi-Annual ETF Miscellaneous star3
[POU] BetaShares British Pound ETF 26.66 -4.06 0.45% 0.09% 11.27% 5.72% 11.30% 0.00% Semi-Annual ETF Miscellaneous star3
AUSTRALIA
AUD
[AUDS] BetaShares Strong Australian Dollar Hdg 3.07 1.73 1.38% 0.18% 125.26% -4.26% -0.94% 2.05% Annual MF Alternative Strategies starNR
USA
USD.
[USD] BetaShares US Dollar ETF 475.62 -6.71 0.45% 0.10% 9.68% 2.10% -0.35% 0.17% Semi-Annual ETF Miscellaneous star5
[YANK] BetaShares Strong US Dollar Hedge 13.62 1.13 1.38% 0.18% 32.44% 3.91% -3.72% 0.00% Annual MF Alternative Strategies starNR
[ZUSD] ETFS Physical US Dollar ETF 12.76 -1.64 0.30% 0.13% 8.68% 2.14% -0.02% 0.00% Annual ETF Miscellaneous star3
Source: ASX and Morningstar

Securities Overview - Property & Infrastructure

Focus: Securities designed to track various Domestic and Global Property & Infrastructure indexes.

We hold positions in VAP, IFRA & DJRE in our SMA

Property & InfrastructureFUM ($m)Qtr
Flows ($m)
No. of Funds
$ 2,119.00 $ 29.00 10
Source: ASX and Morningstar

Overview

December saw strong performance across the domestic REIT sector while March saw the opposite. Expectations of rising interest rates globally saw a sell off across both domestic and global REIT and infrastructure assets.

 

Figure 36: Funds Under Management ($m)Figure 37: Geographic Exposure
Figure 38: Flows ($m)Figure 39: Average Yield
Figure 40: Average Cost
Figure 41: Average Performance
Source: ASX and Morningstar
 
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Key Data: Property & Infrastructure ETFs

Figure 42: Property & Infrastructure ETFs
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
AUSTRALIA
Property
[MVA] VanEck Vectors Australian Property ETF 102.60 32.18 0.35% 0.14% 16.88% -7.27% -0.90% 6.05% Semi-Annual ETF Equity Australia Real Estate star4
[SLF] SPDR? S&P/ASX 200 Listed Property ETF 554.19 -2.48 0.40% 0.16% 2.70% -6.49% -1.10% 4.06% Quarterly ETF Equity Australia Real Estate star4
[VAP] Vanguard Australian Property Secs ETF 983.38 -47.50 0.23% 0.09% 5.68% -6.23% -0.18% 3.08% Quarterly ETF Equity Australia Real Estate star4
Property & Infrastructure
[RINC] BetaShares Legg Mason Real Income Fund 7.39 7.37 0.85% 0.45% 6.42% 0.00% 0.00% 0.00% Quarterly MF Equity Australia Real Estate starNR
GLOBAL
Infrastructure
[GLIN] AMP Capital Global Infras Secs Unhdg 22.17 -4.31 0.85% 0.77% 10.58% -5.25% -0.62% 2.33% Quarterly MF Infrastructure - Global starNR
[IFRA] VanEck Vectors FTSE Glbl Infras(Hdg)ETF 70.68 11.43 0.52% 0.21% 14.68% -5.03% 1.78% 4.04% Quarterly ETF Infrastructure - Global star3
[MICH] Magellan Infrastructure Ccy Hdg ETF 158.63 18.00 1.05% 0.46% 4.83% -2.93% 5.81% 2.78% Semi-Annual MF Infrastructure - Global starNR
[CORE] ETFS Global Core Infrastructure ETF 3.03 0.74 0.45% 0.66% 6.79% -1.97% 0.00% 0.62% Quarterly ETF Equity World Other star2
Property
[DJRE] SPDR? Dow Jones Global Real Estate ETF 204.31 16.61 0.50% 0.19% 5.89% -3.34% 0.09% 3.57% Semi-Annual ETF Equity Global Real Estate star3
[RENT] AMP Capital Global Property Secs Unhdg 13.49 -3.06 0.99% 0.86% 13.24% -2.19% 5.60% 1.55% Quarterly MF Equity Global Real Estate starNR
Source: ASX and Morningstar
 

Securities Overview - Fixed Income & Cash

Focus: Securities designed to provide investors access to Domestic and Global Fixed Income & Cash Markets.

We hold positions in AAA, FLOT, QPON, VBND, IAF, VACF, VGB & IGB in our SMA Portfolios.

Fixed Income & CashFUM ($m)Qtr
Flows ($m)
No. of Funds
$ 4,340.00 $ 250.10 25
Source: ASX and Morningstar

Overview

Diversified credit saw the largest inflows this quarter and following on from last quarter, the largest recipients of these flows were QPON, FLOT & HBRD indicating a continued desire for exposure to floating rate securities.

 

Figure 43: Funds Under Management ($m)Figure 44: Geographic Exposure
Figure 45: Flows ($m)Figure 46: Average Yield
Figure 47: Average Cost
Figure 48: Average Performance
Source: ASX and Morningstar

 

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Key Data: Fixed Income & Cash ETFs

Figure 49: Fixed Income & Cash ETFs
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
GLOBAL
Corporate
[IHCB] iShares Core Global Corp Bd AUDH ETF 88.50 4.15 0.26% 0.25% 15.80% -1.66% 2.58% 2.99% Tri-Annual ETF Diversified Credit star3
[IHHY] iShares Global High Yield Bond AUDH ETF 25.60 2.13 0.56% 0.39% 19.42% -0.68% 3.93% 6.05% Tri-Annual ETF High Yield Credit star2
Diversified
[IHEB] iShares JP Morgan USD EmMkts Bd AUDH ETF 13.81 2.15 0.51% 0.33% 18.12% -2.15% 3.87% 4.12% Tri-Annual ETF Bonds-Emerging Market Debt star2
[VCF] Vanguard Intl Credit Secs Idx (Hdg) ETF 116.25 5.77 0.30% 0.26% 5.19% -1.01% 2.90% 6.64% Quarterly ETF Diversified Credit star3
[VBND] Vanguard Global Aggregate Bd Hdg ETF 8.04 3.51 0.20% 0.31% 28.15% -0.20% 0.00% 0.73% Quarterly ETF Bonds - Global star2
Government
[VIF] Vanguard Intl Fxd Intr Idx (Hdg) ETF 169.23 9.61 0.20% 0.25% 7.58% 0.55% 2.86% 4.63% Quarterly ETF Bonds - Global star3
AUSTRALIA
Cash
[AAA] BetaShares Aus High Interest Cash ETF 1,233.89 -23.24 0.18% 0.02% 15.41% 0.50% 2.02% 2.00% Monthly ETF Australian Cash star5
[BILL] iShares Core Cash ETF 169.87 6.02 0.07% 0.01% 3.76% 0.43% 0.00% 1.16% Monthly ETF Australian Cash star5
[ISEC] iShares Enhanced Cash ETF 25.08 9.03 0.12% 0.01% 16.95% 0.45% 0.00% 1.37% Monthly ETF Australian Short Term Fixed Interest star4
[MONY] UBS IQ Cash ETF 1.00 0.00 0.18% 0.09% 1.03% 0.38% 0.00% 1.40% Monthly ETF Australian Cash star4
Corporate
[PLUS] VanEck Vectors Australian Corp Bd ETF 177.14 25.14 0.32% 0.19% 6.97% 0.93% 0.00% 2.76% Quarterly ETF Diversified Credit star3
[RCB] Russell Inv Australian Select CorpBd ETF 159.50 6.09 0.28% 0.24% 4.62% 0.53% 2.72% 4.11% Quarterly ETF Bonds - Australia star3
[VACF] Vanguard Australian Corp Fxd Intr ETF 100.09 15.89 0.26% 0.23% 7.29% 0.83% 4.12% 2.66% Quarterly ETF Bonds - Australia star3
[FLOT] VanEck Vectors Australian Fltng Rt ETF 81.14 29.09 0.22% 0.08% 16.82% 0.43% 0.00% 1.90% Monthly ETF Diversified Credit star4
[QPON] Betashares Aus Bank Sr Fltng Rt Bd ETF 247.17 57.44 0.22% 0.04% 12.94% 0.13% 0.00% 1.98% Monthly ETF Diversified Credit star4
Diversified
[IAF] iShares Core Composite Bond ETF 528.78 31.77 0.20% 0.08% 6.01% 0.83% 3.08% 2.34% Quarterly ETF Bonds - Australia star4
[VAF] Vanguard Australian Fixed Interest ETF 704.31 22.58 0.20% 0.06% 4.51% 0.84% 3.12% 2.89% Quarterly ETF Bonds - Australia star4
Government
[BOND] SPDR? S&P/ASX Australian Bond ETF 23.47 -5.09 0.24% 0.17% 6.57% 0.79% 3.60% 2.76% Quarterly ETF Bonds - Australia star3
[GOVT] SPDR? S&P/ASX Australian Govt Bd ETF 12.94 0.00 0.22% 0.16% 11.28% 0.85% 3.40% 2.21% Quarterly ETF Bonds - Australia star3
[IGB] iShares Treasury ETF 25.63 4.09 0.26% 0.16% 22.21% 0.95% 3.01% 2.56% Quarterly ETF Bonds - Australia star3
[ILB] iShares Government Inflation ETF 109.38 8.73 0.26% 0.34% 7.58% 0.83% 3.14% 0.91% Quarterly ETF Bonds - Inflation - Linked star3
[RGB] Russell Inv Australian Government Bd ETF 60.18 0.01 0.24% 0.27% 1.25% 0.57% 2.39% 2.80% Quarterly ETF Bonds - Australia star3
[RSM] Russell Inv Australian Semi-Govt Bd ETF 61.00 0.03 0.26% 0.27% 2.66% 0.42% 1.95% 2.44% Quarterly ETF Bonds - Australia star3
[VGB] Vanguard Australian Government Bond ETF 137.50 -4.78 0.20% 0.12% 6.33% 0.89% 2.98% 2.92% Quarterly ETF Bonds - Australia star4
Hybrids
[HBRD] BetaShares Active Australian Hybrids Fund (managed fund) 60.92 40.01 0.55% 0.14% 31.00% -1.17% 0.00% 1.42% Monthly MF Diversified Credit starNR
Source: ASX and Morningstar

Securities Overview - Diversified

Focus: Securities designed to provide investors with diversified multi sector asset allocation.

We manage a range of diversified SMA Portfolios.

DiversifiedFUM ($m)Qtr
Flows ($m)
No. of Funds
$ 78.00 $ 56.60 4
Source: ASX and Morningstar

Overview

Although coming off a small base, the diversified sector almost doubled during the quarter with the majority of flows directed to the “multisector aggressive” sub category. However, negative equity market performance saw the growth orientated funds post the worst returns for the quarter.

 

Figure 51: Funds Under Management ($m)Figure 52: Geographic Exposure
Figure 53: Flows ($m)Figure 54: Average Yield
Figure 55: Average CostFigure 56: Average Performance
Source: ASX and Morningstar

 

Diversify  
with the InvestSMART diversified portfolios

Key Data: Diversified ETFs

Figure 57: Diversified ETFs
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
GLOBAL
Balanced
[VDBA] Vanguard Diversified Balanced ETF 11.46 8.05 0.27% 0.22% 38.41% -0.65% 0.00% 0.58% Quarterly ETF Multisector Balanced star2
Conservative
[VDCO] Vanguard Diversified Conservative ETF 4.49 3.50 0.27% 0.19% 41.87% -0.31% 0.00% 0.64% Quarterly ETF Multisector Moderate star2
High Growth
[VDHG] Vanguard Diversified High Growth ETF 44.11 30.69 0.27% 0.15% 35.72% -1.28% 0.00% 0.96% Quarterly ETF Multisector Aggressive star3
Growth
[VDGR] Vanguard Diversified Growth ETF 18.64 14.38 0.27% 0.19% 37.43% -0.95% 0.00% 0.84% Quarterly ETF Multisector Growth star3
Source: ASX and Morningstar

Securities Overview - Equities

Focus: This group of securities provides the investor with broad-based as well as specific sector exposure across domestic and international equity markets.

We hold positions in IAA, IVV, VEQ, VEU, UMAX, VGS & IOZ our SMA Portfolios.

EquitiesFUM ($m)Qtr
Flows ($m)
No. of Funds
$ 28,332.00 $ 1,999.50 120
Source: ASX and Morningstar

Overview

Global tech was the best performing sector on average during the March quarter. With upgrades to global growth expectations, $400m if net inflows were directed to large cap global equity, with 50% of this going to Vanguard alone.

 

Figure 58: Funds Under Management ($m)Figure 59: Geographic Exposure
Figure 60: Flows ($m)
Figure 61: Average Yield
Figure 62: Average Cost
Figure 63: Average Performance
Source: ASX and Morningstar

 

Want to get international exposure?
Invest in the InvestSMART International Equities Portfolio

Key Data: Equity ETFs

Figure 64: Equity ETFs Europe
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
EUROPE
Equities - Broad
[ESTX] ETFS EURO STOXX 50? ETF 68.20 17.61 0.35% 0.15% 19.85% 0.44% 12.49% 1.16% Semi-Annual ETF Equity Europe star3
[HEUR] BetaShares WisdomTree Europe ETF-Ccy Hdg 50.42 -1.15 0.58% 0.21% 15.56% -1.63% 2.19% 1.50% Semi-Annual ETF Equity Europe star2
[IEU] iShares Europe ETF (AU) 807.04 34.22 0.60% 0.12% 7.24% -0.22% 13.28% 2.05% Semi-Annual ETF Equity Europe star4
[VEQ] Vanguard FTSE Europe Shares ETF 162.54 22.26 0.35% 0.38% 9.40% 0.57% 14.62% 2.14% Quarterly ETF Equity Europe star3
Equities - Strategy
[UBE] UBS IQ MSCI Europe Ethical ETF 11.12 0.89 0.40% 0.34% 4.63% 0.20% 14.40% 2.41% Annual ETF Equity Europe star2
Source: ASX and Morningstar
Figure 65: Breakdown - Equity ETFs Emerging Markets
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
EMERGING MARKETS
Equities - Broad
[IBK] iShares MSCI BRIC ETF (AU) 39.13 2.36 0.72% 0.90% 8.65% 4.32% 28.49% 1.23% Semi-Annual ETF Equity Emerging Markets star2
[IEM] iShares MSCI Emerging Markets ETF (AU) 665.77 45.24 0.69% 0.18% 6.54% 3.14% 23.21% 1.56% Semi-Annual ETF Equity Emerging Markets star3
[VGE] Vanguard FTSE Emerging Markets Shrs ETF 209.15 26.88 0.48% 0.26% 13.47% 4.40% 19.70% 1.65% Quarterly ETF Equity Emerging Markets star3
[WEMG] SPDR? S&P Emerging Markets ETF 20.99 3.36 0.65% 0.26% 21.52% 3.27% 22.94% 1.26% Annual ETF Equity Emerging Markets star2
Source: ASX and Morningstar
Figure 66: Equity ETFs USA
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
USA
Equities - Broad
[IJH] iShares S&P Mid-Cap ETF 140.67 17.55 0.07% 0.30% 18.98% 1.19% 10.31% 1.09% Quarterly ETF Equity North America star4
[IJR] iShares S&P Small-Cap ETF 109.63 1.17 0.07% 0.49% 5.77% 2.64% 12.06% 1.02% Quarterly ETF Equity North America star4
[IRU] iShares Russell 2000 ETF (AU) 74.04 -2.45 0.20% 0.35% 4.66% 1.89% 11.14% 1.03% Quarterly ETF Equity North America star3
[IVV] iShares S&P 500 ETF 2,490.31 23.42 0.04% 0.09% 4.71% 1.20% 13.29% 1.55% Quarterly ETF Equity North America star5
[NDQ] BetaShares NASDAQ 100 ETF 262.33 8.69 0.48% 0.11% 14.69% 5.01% 20.93% 0.40% Semi-Annual ETF Equity North America star4
[QUS] BetaShares FTSE RAFI US 1000 ETF 38.39 0.02 0.40% 0.14% 4.94% -0.65% 8.63% 2.20% Semi-Annual ETF Equity North America star3
[SPY] SPDR? S&P 500 ETF 19.16 -0.15 0.09% 0.29% 9.82% 1.17% 13.21% 1.62% Quarterly ETF Equity North America star3
[VTS] Vanguard US Total Market Shares ETF 1,206.99 41.75 0.04% 0.10% 4.28% 1.37% 13.21% 1.47% Quarterly ETF Equity North America star4
Equities - Strategy
[GGUS] BetaShares Geared US Eq- Ccy Hdg 17.28 5.20 0.80% 0.14% 91.43% -5.57% 22.57% 0.69% Annual MF Equity World - Currency Hedged starNR
[IHVV] iShares S&P 500 AUD Hedged ETF 108.70 9.75 0.10% 0.18% 11.04% -1.43% 13.45% 1.80% Annual ETF Equity North America star3
[UBU] UBS IQ MSCI USA Ethical ETF 6.31 0.00 0.20% 0.20% 2.13% 1.19% 12.78% 1.90% Annual ETF Equity North America star2
[UMAX] BetaShares S&P 500 Yield Maximiser 89.81 0.08 0.79% 0.19% 6.09% -0.76% 6.98% 4.41% Quarterly MF Equity World Other starNR
[ZYUS] ETFS S&P 500 High Yield Low Volatil ETF 49.96 -4.17 0.35% 0.22% 10.03% -4.31% -1.19% 6.36% Quarterly ETF Equity North America star2
[BBUS] BetaShares US Eqs Strong Bear H-Ccy Hdg 66.90 7.14 1.38% 0.26% 71.14% -0.62% -27.65% 0.00% Annual MF Alternative Strategies starNR
Source: ASX and Morningstar
Figure 67: Equity ETFs, Asia
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
ASIA
Equities - Broad
[CETF] Market Vectors ChinaAMC A-Share ETF(Syn) 9.86 0.54 0.72% 0.42% 20.87% 2.23% 24.00% 0.92% Annual ETF Equity Greater China star2
[HJPN] BetaShares WisdomTree Japan ETF-Ccy Hdg 70.26 -0.89 0.58% 0.20% 20.13% -5.81% 12.99% 2.34% Semi-Annual ETF Equity Japan star3
[IAA] iShares Asia 50 ETF (AU) 422.59 26.52 0.50% 0.46% 5.67% 3.75% 28.95% 1.17% Semi-Annual ETF Equity Asia Pacific w/o Japan star3
[IHK] iShares MSCI Hong Kong ETF (AU) 15.06 -1.94 0.48% 1.23% 19.46% 0.45% 17.12% 3.68% Semi-Annual ETF Equity World Other star2
[IJP] iShares MSCI Japan ETF (AU) 237.88 29.98 0.48% 0.22% 10.67% 2.00% 17.75% 1.05% Semi-Annual ETF Equity Japan star3
[IKO] iShares MSCI South Korea ETF (AU) 40.54 0.00 0.64% 0.87% 4.75% 1.51% 23.08% 2.42% Annual ETF Equity World Other star2
[ISG] iShares MSCI Singapore ETF 6.11 -0.52 0.48% 1.02% 3.91% 3.70% 19.20% 2.83% Semi-Annual ETF Equity World Other star2
[ITW] iShares MSCI Taiwan ETF 46.73 -1.23 0.64% 1.36% 1.42% 6.50% 16.54% 2.21% Annual ETF Equity World Other star2
[IZZ] iShares China Large-Cap ETF (AU) 99.01 4.64 0.74% 0.44% 16.48% 2.72% 23.41% 1.89% Semi-Annual ETF Equity Greater China star2
[VAE] Vanguard FTSE Asia ex Japan Shrs Idx ETF 71.08 17.84 0.40% 0.37% 20.80% 2.08% 22.07% 2.80% Quarterly ETF Equity Asia Pacific w/o Japan star3
[PAXX] Platinum Asia (Quoted Managed Hdg) 89.99 20.49 1.10% 0.46% 10.73% -0.26% 0.00% 0.00% Annual MF Equity Asia Pacific w/o Japan starNR
Equities - Strategy
[UBJ] UBS IQ MSCI Japan Ethical ETF 4.51 0.00 0.40% 0.22% 4.48% 2.01% 17.74% 1.39% Annual ETF Equity Japan star2
[UBP] UBS IQ MSCI Asia APEX 50 Ethical ETF 9.17 0.00 0.45% 0.35% 13.91% 3.13% 31.11% 0.31% Annual ETF Equity Asia Pacific w/o Japan star2
Source: ASX and Morningstar
Figure 68: Equity ETFs Australia
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
AUSTRALIA
Equities - Broad
[EX20] BetaShares Aus Ex-20 Port Divrs ETF 25.75 3.44 0.25% 0.15% 13.15% -2.15% 11.95% 2.15% Semi-Annual ETF Equity Australia Large Blend star3
[ILC] iShares S&P/ASX 20 ETF 306.33 0.30 0.24% 0.08% 4.87% -4.25% -2.32% 4.99% Quarterly ETF Equity Australia Large Blend star4
[IOZ] iShares Core S&P/ASX 200 ETF 1,255.47 29.47 0.15% 0.07% 4.21% -3.92% 2.34% 3.84% Semi-Annual ETF Equity Australia Large Blend star5
[ISO] iShares S&P/ASX Small Ordinaries ETF 82.15 3.15 0.55% 0.30% 4.96% -2.98% 14.12% 2.10% Semi-Annual ETF Equity Australia Mid/Small Blend star2
[MVE] VanEck Vectors S&P/ASX MidCap ETF 68.18 8.15 0.45% 0.15% 8.97% -3.87% 10.97% 3.76% Semi-Annual ETF Equity Australia Mid/Small Blend star3
[MVS] VanEck Vectors Small Coms Masters ETF 67.25 0.04 0.49% 0.32% 5.78% -1.88% 8.46% 3.22% Semi-Annual ETF Equity Australia Mid/Small Blend star3
[MVW] VanEck Vectors Australian Equal Wt ETF 447.00 49.70 0.35% 0.08% 9.69% -3.67% 6.97% 3.19% Semi-Annual ETF Equity Australia Large Blend star4
[QOZ] BetaShares FTSE RAFI Australia 200 ETF 255.45 -41.91 0.40% 0.11% 13.58% -4.46% 1.51% 4.20% Semi-Annual ETF Equity Australia Large Blend star4
[SFY] SPDR? S&P/ASX 50 ETF 472.46 11.35 0.29% 0.06% 4.23% -4.24% -0.31% 5.06% Quarterly ETF Equity Australia Large Blend star4
[SSO] SPDR? S&P/ASX Small Ordinaries ETF 18.85 2.94 0.50% 0.25% 4.29% -2.92% 14.42% 2.49% Semi-Annual ETF Equity Australia Mid/Small Blend star2
[STW] SPDR? S&P/ASX 200 ETF 3,511.15 95.43 0.19% 0.04% 10.21% -3.90% 2.43% 4.55% Quarterly ETF Equity Australia Large Blend star5
[VAS] Vanguard Australian Shares ETF 2,533.68 -6.68 0.14% 0.05% 7.28% -3.80% 2.74% 3.78% Quarterly ETF Equity Australia Large Blend star5
[VLC] Vanguard MSCI Australian Large Coms ETF 77.66 0.04 0.20% 0.06% 4.43% -4.74% -2.08% 4.57% Quarterly ETF Equity Australia Large Blend star4
[VSO] Vanguard MSCI Australian Small Coms ETF 153.69 17.72 0.30% 0.11% 8.34% -2.30% 12.72% 3.72% Semi-Annual ETF Equity Australia Mid/Small Blend star3
[ZOZI] ETFS S&P/ASX 100 ETF 8.25 0.01 0.24% 0.18% 2.92% -3.91% 1.37% 5.15% Quarterly ETF Equity Australia Large Blend star3
Equities - Sector
[MVB] VanEck Vectors Australian Banks ETF 28.87 2.13 0.28% 0.11% 8.77% -5.51% -6.79% 5.89% Tri-Annual ETF Equity Australia Other star3
[MVR] VanEck Vectors Australian Resources ETF 81.46 46.27 0.35% 0.14% 27.84% -3.83% 19.61% 3.06% Semi-Annual ETF Equity Australia Other star3
[OZF] SPDR? S&P/ASX 200 Fincls EX A-REIT ETF 58.93 -10.32 0.40% 0.09% 5.96% -6.01% -9.34% 5.16% Semi-Annual ETF Equity Australia Other star4
[OZR] SPDR? S&P/ASX 200 Resources ETF 59.26 3.03 0.40% 0.15% 11.33% -4.32% 17.49% 2.23% Semi-Annual ETF Equity Australia Other star3
[QFN] BetaShares S&P/ASX200 Fincls Sect ETF 13.75 -18.35 0.39% 0.12% 66.26% -6.00% -7.01% 4.15% Semi-Annual ETF Equity Australia Other star3
[QRE] BetaShares S&P/ASX200 Res Sect ETF 117.83 44.65 0.39% 0.23% 170.97% -4.30% 17.45% 1.40% Semi-Annual ETF Equity Australia Other star3
Equities - Strategy
[AUMF] iShares Edge MSCI Australia Mltfctr ETF 7.73 1.17 0.30% 0.22% 11.35% -3.50% 6.43% 4.27% Semi-Annual ETF Equity Australia Large Blend star2
[AUST] BetaShares Managed Risk Australian Share 24.90 0.16 0.49% 0.11% 5.30% -4.09% 1.12% 4.30% Semi-Annual MF Equity Australia Large Blend starNR
[BBOZ] BetaShares Australian Eqs Strong BearHdg 83.00 -16.67 1.38% 0.13% 48.45% 11.24% -1.69% 0.00% Annual MF Alternative Strategies starNR
[BEAR] BetaShares Aus Equities Bear Hedge 53.95 -4.22 1.38% 0.11% 22.02% 4.81% -0.20% 0.00% Annual MF Alternative Strategies starNR
[DIV] UBS IQ Morningstar Australia Div Yld ETF 26.24 0.11 0.30% 0.19% 1.98% -6.98% -1.30% 4.20% Quarterly ETF Equity Australia Large Growth star3
[ETF] UBS IQ Morningstar Australia Quality ETF 8.19 -2.07 0.30% 0.12% 1.73% -5.14% 2.82% 1.52% Semi-Annual ETF Equity Australia Large Blend star3
[FDIV] VanEck Vectors S&P/ASX Franked Div ETF 3.68 0.01 0.35% 0.14% 10.75% -5.43% -4.16% 5.81% Quarterly ETF Equity Australia Large Blend star3
[GEAR] BetaShares Geared Australian Equity(Hdg) 69.87 18.72 0.80% 0.13% 47.18% -9.21% 0.61% 7.11% Semi-Annual MF Equity Australia Large Geared starNR
[IHD] iShares S&P/ASX Dividend Opps ETF 251.36 0.21 0.30% 0.11% 3.50% -5.90% -3.41% 5.18% Quarterly ETF Equity Australia Large Value star4
[MVOL] iShares Edge MSCI Australia Mini Vol ETF 6.33 0.00 0.30% 0.16% 3.33% -3.77% 2.64% 4.75% Semi-Annual ETF Equity Australia Large Blend star3
[RARI] Russell Inv Australian Rspnb Inv ETF 68.38 6.29 0.45% 0.23% 3.71% -4.19% -0.69% 5.53% Semi-Annual ETF Equity Australia Large Value star3
[RDV] Russell Inv High Dividend Aus Shrs ETF 279.96 10.92 0.34% 0.09% 3.83% -6.89% -1.81% 6.70% Quarterly ETF Equity Australia Large Value star4
[RVL] Russell Inv Australian Value ETF 12.82 0.04 0.34% 0.07% 8.43% -8.83% -5.33% 4.64% Semi-Annual ETF Equity Australia Large Value star3
[SMLL] BetaShares Australian Small Coms Sel 19.70 4.67 0.39% 0.50% 11.43% -2.53% 0.00% 1.22% Semi-Annual MF Equity Australia Mid/Small Blend starNR
[SWTZ] Switzer Dividend Growth 75.60 2.18 0.89% 0.49% 3.78% -4.91% -2.51% 3.87% Quarterly MF Equity Australia Large Growth starNR
[SYI] SPDR? MSCI Australia Sel Hi Div Yld ETF 178.35 0.19 0.35% 0.07% 9.08% -4.74% -2.97% 4.93% Quarterly ETF Equity Australia Large Value star4
[UBA] UBS IQ MSCI Australia Ethical ETF 176.13 7.23 0.17% 0.09% 1.64% -4.32% 0.83% 4.14% Semi-Annual ETF Equity Australia Large Blend star4
[VHY] Vanguard Australian Shares High Yld ETF 1,014.03 57.74 0.25% 0.08% 6.18% -6.33% -2.23% 8.06% Quarterly ETF Equity Australia Large Blend star4
[YMAX] BetaShares Aus Top 20 Eq Yld Maxmsr 381.90 -1.14 0.79% 0.19% 4.63% -3.41% -1.20% 9.11% Quarterly MF Equity Australia Large Blend starNR
[ZYAU] ETFS S&P/ASX 300 High Yield Plus ETF 51.37 9.95 0.35% 0.16% 12.10% -4.03% 4.61% 10.13% Quarterly ETF Equity Australia Large Blend star3
[HVST] BetaShares Australian Div Harvester(mgd) 208.52 -41.12 0.90% 0.12% 13.38% -6.41% -16.10% 11.91% Monthly MF Equity Australia Large Value starNR
[KSM] K2 Australian Small Cap Fund 15.47 -0.60 2.70% 1.32% 1.55% -3.62% 12.11% 9.83% Annual MF Alternative Strategies starNR
[FAIR] BetaShares Australian Sustnby Ldrs ETF 98.67 46.76 0.49% 0.15% 24.16% -1.16% 0.00% 0.24% Semi-Annual ETF Equity Australia Large Blend star3
[EINC] BetaShares Legg Mason Equity Income Fund 7.22 7.41 0.85% 0.35% 6.11% 0.00% 0.00% 0.00% Quarterly MF Equity Australia Large Value starNR
Source: ASX and Morningstar
Figure 69: Equity ETFs Global
NameTotal FUM ($M)Qtr Flows ($M)MERAvg SpreadAvg Liquidity3MTH Return12MTH ReturnYieldFrequencyStructureSub CategorySTAR Rating
GLOBAL
Equities - Broad
[IHOO] iShares Global 100 AUD Hedged ETF 35.15 0.00 0.43% 0.44% 5.88% -3.19% 10.34% 11.69% Annual ETF Equity World - Currency Hedged star2
[IHWL] iShares Core MSCI World All Cap AUDH ETF 11.44 2.65 0.19% 0.38% 13.82% -2.04% 10.99% 1.11% Semi-Annual ETF Equity World - Currency Hedged star2
[IOO] iShares Global 100 ETF (AU) 1,332.56 12.68 0.40% 0.13% 3.18% 0.08% 13.29% 1.91% Semi-Annual ETF Equity World Large Blend star4
[IVE] iShares MSCI EAFE ETF (AU) 316.06 9.81 0.33% 0.19% 5.50% 0.22% 13.83% 2.19% Semi-Annual ETF Equity World Large Blend star3
[IWLD] iShares Core MSCI World All Cap ETF 22.54 2.54 0.16% 0.40% 7.83% 1.05% 13.28% 1.46% Semi-Annual ETF Equity World Large Blend star2
[KII] K2 Global Equities Fund (Hedge Fund) 17.81 -2.24 2.70% 1.33% 4.42% -1.79% 11.38% 0.00% Quarterly MF Alternative Strategies starNR
[MGE] Magellan Global Equities 988.79 24.63 1.35% 0.40% 3.17% 0.65% 13.38% 1.68% Annual MF Equity World Large Blend starNR
[MHG] Magellan Global Equities Currency Hdg 63.97 3.56 1.35% 0.50% 3.07% -1.83% 13.08% 1.70% Annual MF Equity World - Currency Hedged starNR
[QUAL] VanEck Vectors MSCI Wld ex Aus Qlty ETF 339.78 18.96 0.40% 0.13% 7.76% 1.83% 15.68% 2.90% Annual ETF Equity World Large Blend star4
[UBW] UBS IQ MSCI World ex Australia Ethcl ETF 27.00 1.98 0.35% 0.25% 4.56% 0.72% 13.22% 1.79% Annual ETF Equity World Large Blend star2
[VEU] Vanguard All-World ex-US Shares ETF 1,176.98 88.69 0.11% 0.12% 4.48% 1.46% 16.08% 2.34% Quarterly ETF Equity World Large Blend star4
[VGAD] Vanguard MSCI Index Intl (Hdg) ETF 385.65 29.68 0.21% 0.09% 8.85% -2.38% 10.80% 5.08% Semi-Annual ETF Equity World - Currency Hedged star4
[VGS] Vanguard MSCI Index Intl ETF 940.55 120.71 0.18% 0.07% 9.26% 0.73% 13.28% 2.66% Quarterly ETF Equity World Large Blend star4
[WXHG] SPDR? S&P World ex Australia(Hedged) ETF 78.52 2.33 0.35% 0.23% 3.73% -2.36% 11.07% 2.94% Annual ETF Equity World - Currency Hedged star3
[WXOZ] SPDR? S&P World ex Australia ETF 166.80 3.54 0.30% 0.18% 1.56% 0.76% 13.63% 2.19% Annual ETF Equity World Large Blend star3
[PIXX] Platinum International (Quoted Mngd Hdg) 185.17 60.55 1.10% 0.33% 15.04% 0.83% 0.00% 0.00% Annual MF Equity World Large Blend starNR
Equities - Sector
[BNKS] BetaShares Glb Banks ETF-Ccy Hdg 75.12 5.14 0.57% 0.29% 21.59% -2.18% 11.32% 2.13% Semi-Annual ETF Equity World Other star3
[DRUG] BetaShares Glb Healthcare ETF-Ccy Hdg 21.48 -2.11 0.57% 0.39% 22.13% -2.44% 6.90% 0.31% Semi-Annual ETF Equity World Other star2
[FOOD] BetaShares Glb Agltr Coms ETF-Ccy Hdg 17.32 1.19 0.57% 0.40% 21.15% -5.50% 7.91% 1.12% Semi-Annual ETF Equity World Other star2
[FUEL] BetaShares Glb Energy Coms ETF-Ccy Hdg 15.94 4.61 0.57% 0.36% 31.53% -3.82% 3.95% 3.95% Semi-Annual ETF Equity Global Resources star2
[GDX] Market Vectors Gold Miners ETF 67.16 6.90 0.53% 0.35% 8.29% -3.71% -3.28% 0.67% Annual ETF Equity Global Resources star2
[HACK] Betashares Global Cybersecurity ETF 64.92 4.90 0.67% 0.32% 10.41% 10.49% 14.70% 2.30% Semi-Annual ETF Equity Global Technology star2
[IXI] iShares Global Consumer Staples ETF (AU) 108.47 -8.18 0.47% 0.38% 4.26% -3.63% 2.57% 1.92% Semi-Annual ETF Equity World Other star3
[IXJ] iShares Global Healthcare ETF (AU) 482.33 -2.11 0.47% 0.34% 3.34% 0.71% 9.05% 1.25% Semi-Annual ETF Equity World Other star3
[IXP] iShares Global Telecom ETF (AU) 47.43 0.38 0.47% 0.67% 3.43% -3.94% -1.22% 3.02% Semi-Annual ETF Equity World Other star2
[MNRS] BetaShares Glb Gold Miners ETF-Ccy Hdg 4.97 0.00 0.57% 0.67% 15.84% -6.38% -11.13% 0.47% Semi-Annual ETF Equity Global Resources star1
[ROBO] ETFS ROBO Glbl Robotics and Atmtn ETF 75.95 31.74 0.69% 0.29% 23.45% 2.69% 0.00% 0.00% Annual ETF Equity Global Technology star2
Equities - Strategy
[DMKT] AMP Capital Dynamic Markets ETF (Hedge) 26.84 2.51 0.50% 0.67% 4.71% -2.44% 2.25% 5.04% Semi-Annual MF Multisector Balanced starNR
[ETHI] BetaShares Global Sstnbty Ldrs ETF 168.54 40.44 0.59% 0.27% 12.50% 4.11% 18.60% 1.29% Semi-Annual ETF Equity World Large Blend star3
[GROW] Schroder Real Return ETF 45.53 1.13 0.90% 0.54% 4.56% -0.27% 3.16% 2.59% Semi-Annual MF Multisector Balanced starNR
[MOAT] Market Vectors Morningstar Wide Moat ETF 52.74 2.44 0.49% 0.32% 5.37% -0.42% 10.89% 0.92% Annual ETF Equity North America star3
[QMIX] SPDR? MSCI World Quality Mix 8.08 0.92 0.40% 0.28% 5.19% 0.22% 12.71% 2.28% Semi-Annual ETF Equity World Large Blend star2
[TECH] ETFS Morningstar Global Technology ETF 43.71 12.69 0.45% 0.30% 19.99% 8.91% 0.00% 0.79% Semi-Annual ETF Equity Global Technology star2
[WDIV] SPDR? S&P Global Dividend ETF 168.81 9.68 0.50% 0.22% 7.70% -1.03% 8.55% 4.01% Semi-Annual ETF Equity World Large Value star3
[WDMF] iShares Edge MSCI World Multifactor ETF 28.59 4.99 0.35% 0.42% 7.37% 2.24% 19.49% 4.39% Semi-Annual ETF Equity World Large Blend star2
[WRLD] BetaShares Managed Risk Global Share 29.91 -11.65 0.54% 0.25% 20.17% 0.05% 11.36% 1.01% Annual MF Multisector Aggressive starNR
[WVOL] iShares Edge MSCI World Minimum Vol ETF 9.85 -2.20 0.30% 0.59% 21.00% -0.73% 7.97% 2.59% Semi-Annual ETF Equity World Large Blend star2
[MOGL] Montgomery Global Equities (Managed Fd) 71.78 8.39 1.32% 0.45% 9.51% 2.23% 0.00% 0.00% Semi-Annual MF Equity World Large Blend starNR
[ESGI] VanEck Vectors MSCI Intl Sust Eq ETF 4.02 4.02 0.55% 0.34% 58.31% 0.00% 0.00% 0.00% Annual ETF Equity World Large Blend star1
[WRLD] BetaShares Managed Risk Global Share 42.27 -2.37 0.54% 0.18% 5.39% 11.99% 0.99% 12.30%     Multisector Aggressive star3
[WVOL] iShares Edge MSCI World Minimum Vol ETF 12.40 0.00 0.30% 0.46% 5.44% 8.87% 2.49% 4.68%     Equity World Large Blend star2
[MOGL] Montgomery Global Equities Fund (Managed Fund) 62.58 62.58 1.89% 0.28% 0.00% 0.00% 0.00% 14.35%     Equity World Large Value star1
Source: ASX and Morningstar 
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Glossary

Bid-offer spread: is the bid o er spread is the diference between the highest price that a buyer is willing to pay and the lowest price a seller is willing to sell at.

Commodity: A raw material or primary agricultural product that can be bought and sold.

Currency Hedging: is a risk management technique companies can use to hedge their foreign exchange risk usually using forward contracts and options.

Derivative: A derivative is a contract that derives its value from an underlying asset.

Diversifed: Diversification is a way of managing risk by investing in a variety of lowly correlated securities.

Domicile: The legal home country of a company.

Equal Weighted: Means that each stock is given the same weight in a portfolio.

ETF: An ETF is an investment fund that is traded on a stock exchange, tracking an index.

Floating rate securities: An investment with variable interest payments based on a floating rate.

Flows: The amount of money coming into or out of a fund.

Fully replicating: An ETF that tracks the benchmark index by holding all the stocks in the index.

Funds under Management (FUM): The market value of the assets which a fund manages on behalf of investors.

Hidden liquidity: Refers to the stock of units held by the Market Makers. Their job is to ensure suficient liquidity is available during market hours around the ETFs NAV. It is referred to as ‘hidden’ as they will tend to only place volume on the screen as required.

Leverage: Using debt to finance assets.

Liquidity: Describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price.

Managed Funds (MF): If you invest in a managed fund your money, along with those of other investors will be collectively invested by an investment team in various assets.

Management Expense Ratio (MER): A fee charged to the assets of a fund used to pay for the costs of running the fund.

Market Capitalisation: The number of shares outstanding multiplied by the share price

Multisector aggressive: Funds that invest in a number of sectors and are heavily weighted towards growth assets

Multi sector asset allocation: Funds that invest across a number of sectors.

On screen liquidity: Simply refers to the publicly quoted bid and offers you see when you look at a trading screen.

Optimised/partially replicating: As opposed for fully replicating, partially replicating ETFs track the benchmark index without holding all the stocks in the index.

PDS: Product disclosure statement is a document, or sometimes a group of documents, that contains information about a financial product including any significant benefits and risks, the cost of the financial product and the fees and charges that the nancial product issuer may receive.

Prospectus: A Prospectus is a formal legal document that is issued upon on listing on an exchange. It outlines how the raised money will be used and should contain all the information required for investors to make an informed decision.

Security: A tradeable financial asset.

Separately Managed Account (SMA): An SMA is an investment account managed to a model portfolio that is controlled by a portfolio manager. Unlike a managed fund, an SMA is not a pooled investment, everyone’s funds are not in the same bucket. You have your own account and you are the beneficial owner of the stocks held in that account.

Spread: The difference between the price at which someone is willing to buy a security and the price at which someone is willing to sell a security.

Star Rating: InvestSMART’s star rating is a measure of key quantifiable metrics for ETFs: size, fees, liquidity, spread, tracking error.

Structured Products (SP): This refers to a security or derivative which gives financial exposure to the performance of an underlying instrument. Types of structured products include Exchange Traded Commodities (ETCs) and Exchange Traded Notes (ETNs).

Tracking difference: The difference in returns of ETF to its Benchmark for a given period

Tracking error: Refers to the volatility of the tracking difference

Underlying liquidity: Refers to the liquidity in the underlying market that the ETF is designed to track. Underlying liquidity is the most important measure of liquidity when reviewing an ETF. You will find that the less liquid the underlying index, the wider the on-market bid-ask spread tends to be to account for the transactional costs involved in dealing.

Yield: The income return on an investment, such as interest or dividends received from holding it. Yield is usually expressed as an annual percentage rate.

 

  

IMPORTANT: This information is general advice only and has been prepared without considering your financial situation or objectives and you should consider if the information is appropriate for your circumstances before making an investment decision. Before acting on this information, please ensure that you read all relevant disclosure documents, including but not limited to, the Product Disclosure Statement (PDS) and Financial Services Guide (FSG). You may wish to speak to a financial advisor for further guidance. Numerical gures presented are accurate at the time of preparation and where required, further disclosure will be appropriately provided. Past performance cannot be relied upon for future performance. Information presented, gures quoted and diagrams are accurate as at 31 December 2017. Exchange listed managed funds are included in this report but not rated. Before making any investment decisions, please read the latest PDS provided by each ETF issuer and check all relevant ETF fees, as they are subject to change without notice.


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