VanEck unveils long-short equity ETF in Australia | Market wire

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US-based exchange traded fund supplier VanEck is set to launch the primary Australian lively equities hedge fund-like exchange traded fund on Australia’s largest exchange.

The VanEck Australian Lengthy Brief Complicated ETF, an lively high-conviction, unconstrained Australian equity portfolio, is set to listing on the Australian Securities Trade.

The new lively ETF will take tactical long and short positions and can intention to outperform the S&P/ASX 200 over the medium to long time period, based on the supervisor.

The ETF will undertake an lively management framework to analyse hundreds of real-time information factors to establish securities with a probability of producing extra return and people which can be more prone to underperform, VanEck stated.

The launch of the VanEck Australian Lengthy Brief Complicated ETF comes as international ETF suppliers are turning to hedge fund methods to attempt to generate increased returns and appeal to traders with new lively ETFs.

Earlier this month, BlackRock filed with the US regulator to launch an ETF centered on managed futures, one other strategy typically utilized by quantitative hedge funds that take each long and short positions in futures contracts linked to equities, bonds, commodities and currencies.

Arian Neiron, chief government and managing director of VanEck’s Asia-Pacific business, stated the Australian equity market was “littered with inefficiencies to exploit”.

“It is hyper-concentrated, overcrowded and lacks persistent ‘factor’ dominance.”

“With style, sector and size leadership proven to be highly idiosyncratic, this has presented an opportunity to exploit the market’s inefficiencies through a highly active approach in 2025 and beyond,” he added.

Neiron stated that “market swings and sector-level dispersion were more pronounced than ever” final 12 months, as shifting international growth expectations, geopolitical tensions and the evolving rate of interest surroundings affected efficiency.

“This volatility is expected to persist into 2025,” Neiron stated, including that “style rotations and valuation gaps are presenting short-term opportunities in the Australian market that require adaptability that are not supported by traditional active funds but will complement core beta and smart beta approaches”.

Australia’s ETF industry noticed web inflows double in 2024, rising to A$30.8bn ($19.1bn) from A$15bn in 2023, based on the Betashares Australian ETF review.

Vanguard was the most important beneficiary of the continued growth pattern because it took in A$9.5bn in web new money final 12 months, representing about 31 per cent of complete industry flows.

*Ignites Asia is a news service printed by FT Specialist for professionals working within the asset management industry. Trials and subscriptions can be found at ignitesasia.com.