BetaShares, Wisdom Tree partner with new ETFs


By Daniel Paperny

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BetaShares has partnered with New York-based asset manager Wisdom Tree to launch two new exchange-traded funds (ETF) on the ASX in a bid to help investors diversify their portfolios and access European and Japanese equities markets.

The news comes as Australia’s ETF industry soared to a record $21.9 billion in total funds under management last month, with over half of the growth coming from new inflows.

BetaShares said the two new funds would be Australia’s first currency-hedged European and Japanese equity ETFs on the ASX and would allow Australian investors to tap into investment strategies used by WisdomTree’s existing suite of ETF products worldwide.

The ETF provider’s managing director, Alex Vynokur, said the two new ETFs would provide investors with exposure to globally competitive companies that were well placed to benefit from growth in international trade and the potential ongoing reliance by the European and Japanese economies on exports and currency weakness to sustain economic growth.

“According to the “BetaShares/Investment Trends ETF Report 2015”, access to overseas markets is the second most important reason individual investors seek out ETFs, after diversification,” Vynokur said.
WisdomTree’s Europe ETF – which is hedged to the US dollar – was ranked as the best ETF globally for net inflows in 2015, with over US$13 billion of inflows throughout the year. Wisdom Tree’s Japan ETF, meanwhile, currently has around US$9 billion in assets under management.

Both ETFs would allow investors to benefit from the export-driven economies of Europe and Japan, Vynokur added.

“These products allow us to address this need and provide investors with exposure to European and Japanese companies, while at the same time sheltering their returns from currency volatility,” he said.

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