Van Eck Global has launched Australia's first and only small company dividend paying ETF – the Market Vectors Small Cap Dividend Payers ETF (MVS).
MVS is the first ETF in Australia that includes only the most liquid ASX listed small companies and only those that paid their most recent dividend.
Arian Neiron, Managing Director, Van Eck Global Australia, says: "MVS gives investors an instant portfolio of dividend paying small company stocks via a single trade on the ASX. For investors seeking to benefit from the growth potential of small companies while being rewarded with dividends and franking credits, MVS provides an ideal portfolio solution. This ETF will have broad appeal for investors looking for a liquid, transparent and diversified small company portfolio with one of the lowest management fees among both active and passive strategies in the market.”
MVS tracks an innovative index which has outperformed with reduced volatility relative to the S&P/ASX Small Ordinaries Accumulation Index over the last five years. The Market Vectors Australia Small-Cap Dividend Payers Index was designed by Market Vectors Index Solutions (MVIS), the Van Eck Global index business which specialises in creating bespoke investable indices for ETFs. The index exclusively selects dividend paying companies in the asset class and seeks to reduce risk by focusing on only the most liquid stocks.
Neiron says: "We are delighted to announce the launch of the seventh Market Vectors ETF listed on the ASX in just over 18 months, demonstrating our growth as a company and commitment to the Australian market.”