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Van Eck’s new small cap dividend ETF wins support


Van Eck Global’s Market Vectors Small Cap Dividend Payers ETF (MVS) has jumped to more than USD25m in its first few days of trading following buying for managed accounts by ETF strategist Implemented Portfolios.

Launched on 28 May 2015, MVS is the first ETF in Australia that includes only the most liquid ASX listed small companies and only those that have paid their most recent dividend. It also has one of the lowest management fees among both active and passive strategies in the market.

Arian Neiron, Managing Director, Van Eck Global Australia, says: “The investment  by one of Australia's largest ETF clients confirms our belief that MVS will have broad appeal for investors looking for a liquid, transparent and diversified small company portfolio. The index MVS tracks is able to demonstrate outperformance against the S&P/ASX Small Ordinaries Index.  Now Australian investors have a low cost small company investment alternative to actively managed funds. 
“Market Vectors Index Solutions have been able to develop an index which exclusively selects dividend paying companies in the asset class and seeks to reduce risk by focusing on only the most liquid stocks. This approach provides an ideal portfolio solution for investors that are seeking to benefit from the growth potential of small companies at significantly lower costs than active management,” says Neiron.
Jon Reilly, Chief Investment Officer, Implemented Portfolios, says: “We welcome this innovative approach to indexing small cap equities in Australia, an area that we believe was overdue for a non-market cap weighted, investable index and accompanying ETF. Our long term forecasting has shown good value in this part of the market and we were attracted to the more focused exposure that the Small Cap Dividend Payers ETF provides. On a broader note, it is also pleasing to observe the ongoing development and growth in Australian ETFs, providing ETF Strategist managers like Implemented Portfolios an increasing range of options with which to construct better client portfolios.“

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