ETFs are democratising investing so that now all types of investors can buy the exact same exposure that were once only available to institutional investors.
In an Australian first, VanEck is offering investors a way to access a portfolio of international companies selected for their higher value score relative to sector peers, as measured by MSCI.
Value has been making a comeback
Value has been a hot topic among international equity investors in recent months as ‘value’ companies outperformed ‘growth’ companies into the end of 2020.
Traditionally, there has only been one way investors have been able to gain exposure to a ‘value’ portfolio, high fee active funds focussed on identifying ‘value’ opportunities. To date, only institutional investors have been able to access to low-cost passive international value investments.
That is changing.
We have partnered with MSCI to offer investors the opportunity to access a strategy that tracks MSCI’s World ex Australia Enhanced Value Top 250 Select Index. The result is the VanEck Vectors MSCI International Value ETF, which is listed on ASX under the ticker ‘VLUE’.
VLUE invests in 250 international companies selected for their higher value score relative to sector peers.
VLUE is an ETF that allows investors to add a value tilt to their portfolio, for passive fees.
The VLUE opportunity International companies exhibiting value characteristics Access a portfolio of international companies that are selected for their high value score relative to sector peers as measured by MSCI based on: (i) price to book value; (ii) price to forward earnings; and (iii) enterprise value to cash flow from operations.
Long term focus, capturing value across the market cycle The index is designed to capture a high level of exposure to value while minimising unintended and unwanted sector bets. Diversified across countries, sectors and companies Offering investors a portfolio of approximately 250 companies across a range of geographies, sectors and economies.
VanEck Investments Limited ACN 146 596 116 AFSL 416755 (‘VanEck’) is the responsible entity and issuer of units in VLUE. This is general advice only, not personal financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Read the PDS and speak with a financial adviser to determine if the fund is appropriate for your circumstances. The PDS is available here.
VLUE is subject to investment risk, including possible loss of capital invested. No member of the VanEck group guarantees the repayment of capital, the payment of income, performance, or any particular rate of return from the fund. VLUE will invest in international markets which have specific risks that are in addition to the typical risks associated with investing in the Australian market. These include foreign currency, ASX trading time differences, country or sector concentration, political, regulatory and tax risks. The PDS details the key risks.
VLUE is indexed to a MSCI index. VLUE is not sponsored, endorsed or promoted by MSCI, and MSCI bears no liability with respect to VLUE or the MSCI World ex Australia Enhanced Value Top 250 Select Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and VLUE.