Market Vectors has been awarded Investment Grade Index ratings by research firm Lonsec for its suite of four Australian Securities Exchange (ASX) listed exchange-traded funds.
Market Vectors, the ETF arm of Van Eck Global, launched the funds on the ASX last week providing investors with access to Australian bank and small cap resources ETFs for the first time.
In announcing the gradings Lonsec noted that Matket Vectors “has a track record in minimising tracking error with sector-focused ETFs and more broad-based ETFs,” and “has proven its ability to manage cash flows from dividends.”
“Our ETFs offer something different to other ETFs listed in Australia because they aim to track pure-play investable indices which are purpose-built for ETFs by Market Vectors Index Solutions,” says Matthew McKinnon, Market Vectors’ Australia director, institutions and intermediaries. “Our index methodology reduces exposure to the large cap companies that dominate many Australian indices, and increases exposure to the most liquid Australian mid and small caps.”