Benefits of investing in VanEck ETFs

Each Fund provides investors with:

• Cost effective and easy access to a portfolio of Australian equities via a single trade on ASX

• Transparency of holdings, pricing and performance, and

• Flexibility of intraday ASX trading capability.

Compared to unlisted actively managed funds, investors benefit from:

• trading via live prices on ASX;

• potentially lower costs and lower tax liabilities;

• liquidity;

• transparency; and

• intraday trading.

About the Fund

The VanEck Vectors Australian Equal Weight ETF invests in a diversified portfolio of ASX-listed securities with the aim of providing investment returns (before management costs) that closely track the returns of the MVIS Australia Equal Weight Index.

Index description

The MVIS Australia Equal Weight Index is a pure-play index that includes the largest and most liquid ASX-listed companies, combining benchmark with blue-chip characteristics, purpose-built to capture the true performance of the Australian equities market, with real diversification across both securities and sectors.

Individual Index components are determined using a stringent rules-based methodology focusing on liquidity, with a minimum of 25 holdings, weighted equally.

The unique pure-play approach expands local exposure to include offshore companies with a listing in Australia which generate at least 50% of their revenues (or - where applicable - have at least 50% of their assets) in this market.

Key points

• Invest in over 60 of the largest and most liquid ASX-listed companies across all sectors in a single ASX trade   

• True diversification across securities and market sectors reducing concentration risk     

• Equal weight methodology is indifferent to market capitalisation

How we invest your money

The Fund gives investors access to a portfolio of the largest and most liquid ASX-listed companies all equally weighted with diversification across both securities and sectors.

In the highly concentrated Australian equities market, equally weighting a portfolio delivers investors significantly improved diversification and reduced stock and sector concentration, resulting in superior investment outcomes compared to tracking a market capitalisation weighted index, such as the S&P/ASX 200 Accumulation Index (S&P/ASX 200).

There is a large volume of academic and investment industry research that concludes equal weight outperforms market capitalisation for the following reasons:

• it provides exposure away from mega and larger caps to smaller cap with more growth potential;

• it provides exposure to value stocks; and

• it is an inherently contra trading strategy involving frequent rebalancing that takes profits from winners and increases exposure to losers to maintain equal weighting.

The index MVW tracks, the MVIS Australia Equal Weight Index (MVW Index) has demonstrated long term outperformance.