FTSE Russell index selected for first infrastructure ETF traded on ASX
— FTSE Developed Core Infrastructure 50/50 Index licensed by VanEck Australia
— First infrastructure index-linked ETF traded on the Australian Securities Exchange
— Index captures 155 infrastructure stocks representing the world’s Developed Markets
FTSE Russell, the global index provider, announces that VanEck Australia, one of Australia’s prominent providers of exchange traded products, has chosen to license the FTSE Developed Core Infrastructure 50/50 Index for its latest Exchange Traded Fund (ETF), the VanEck Vectors FTSE Global Infrastructure (Hedged) ETF.
Last year, after consultation with key market practitioners, the FTSE Infrastructure Index Series was expanded to include the 50/50 indexes, which provide an industry-defined interpretation of infrastructure and adjust the exposure to certain infrastructure sub-sectors. The expansion of the index series is in response to increased interest in this relatively young asset class, led by market participants diversifying into real assets such as infrastructure and real estate.
Sudir Raju, Managing Director ETP Relationships, Asia, FTSE Russell, said:
“We are delighted that VanEck Australia has selected one of FTSE Russell’s infrastructure indexes for its latest ETF. This listing is seen by many in the market as an innovative new step, as it is the first ETF globally to track the new FTSE Infrastructure 50/50 Index. Collaborating with VanEck Australia on this recent product launch further solidifies our commitment to the Australian investment marketplace.”
Arian Neiron, Managing Director of VanEck Australia, said:
“We have seen growing demand for diverse investment opportunities and the launch of our new infrastructure ETF gives Australian investors access to an asset class that they may not otherwise have access to. The FTSE benchmark is broadly regarded as the preferred global listed infrastructure securities benchmark given its construction and sector capping aligns with industry definitions.”
The FTSE Developed Core Infrastructure 50/50 Index is part of the FTSE Infrastructure Index Series and gives market participants an industry-defined interpretation of infrastructure that adjusts the exposure to certain infrastructure sub-sectors. The constituent weights for these indexes are adjusted according to three broad industry sectors:
- 50% Utilities
- 30% Transportation including capping of 7.5% for railroads/railways
- 20% mix of other sectors including pipelines, satellites and telecommunication towers
The FTSE Core Infrastructure indexes focus on companies that own, operate and/or manage infrastructure structures or networks. Further details around index methodology and a supporting factsheet can be found here.
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