VanEck FTSE International Property (Hedged) ETF
VanEck FTSE International Property (Hedged) ETF
as at 30-Nov-23
Total Net Assets$258.23M
Dividend Frequency4 each year
Management fee (p.a.)0.20%
Number of securities327
REIT gives investors access to a diversified portfolio of international property securities from developed markets (ex Australia) with returns hedged into Australian dollars. REIT aims to provide investment returns before fees and other costs which track the performance of the Index.
International Real Estate Investment Trusts (REITs)
Access to a portfolio of approximately 300 international REITs diversified by country and sector providing exposure to commercial, healthcare, retail, office, industrial and other sectors not available in Australia
Efficient access to international property investing with low entry costs
Liquid form of international "bricks & mortar" with relatively low capital commitment and complexity compared to directly purchasing property overseas
Income and growth potential
International REITs generally pay more dependable and higher dividends than other companies listed overseas
Australian dollar currency hedged
Index Key points
FTSE EPRA Nareit Developed ex Australia Rental Index AUD Hedged
The securities in the Index are real estate investment trusts (REITs) and companies that own real estate assets that derive a significant portion of their EBITDA from rental income and are listed on exchanges in the world’s major developed economies (ex Australia).
Summary of Index methodology
Below is a general overview of the process FTSE follows to determine the constituents of the REIT Index:
- The eligible universe of securities is the FTSE Global All Cap Universe.
- FTSE screens the eligible universe to include only companies in ICB Supersector Real Estate, ICB Subsector Heavy construction, or ICB Subsector Home Construction. Additional companies may be included with guidance from European Public Real Estate Association (EPRA), National Association of Real Estate Investment Trusts (NAREIT) and FTSE's Regional Advisory Committee consisting of senior market practitioners who are representative of the appropriate sectors of the real estate investment community.
- Only companies which derived in the previous full financial year at least 75% of total EBITDA from ownership, trading and development of income-producing real estate are included;
- A company must be classified as Rental to be included in the REIT Index. To be classified as Rental the EBITDA or revenue from properties must be greater than or equal to 70% of the total EBITDA or revenue both years individually of a two year period.
- Size thresholds for both new and continued membership are applied at each quarterly review (based on a percentage of their respective region's investable market cap).
- A liquidity screen is conducted semi-annually in March and September based on each security's monthly median daily trading.
FTSE reduces the exposure of the Index to foreign exchange rate fluctuations between the Australian dollar and currencies in which the constituents are denominated by notionally entering into forward foreign exchange contracts on a rolling one-month basis at the end of each month. The Index is not fully hedged and retains some exposure to currency movements.
The Index is reviewed and re-balanced on a quarterly basis, usually as of the close of the third Friday of March, June, September and December. The Index constituents will be compiled using data available after the close of business on the Monday 4 weeks prior to the re-balancing effective date.
FTSE International Limited (FTSE), a member of the London Stock Exchange. FTSE is not a related body corporate of VanEck Investments Limited.
The Fund is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited or the London Stock Exchange Group companies (‘LSEG’) (together the ‘Licensor Parties’) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE EPRA Nareit Developed ex Australia Rental Index AUD Hedged (‘Index’) upon which the Fund is based, (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Fund. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to VanEck or to its clients. The Index is calculated by FTSE or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein. All rights in the Index vest in FTSE. “FTSE®” is a trademark of LSEG and is used by FTSE and VanEck under license.
Holdings & allocations
Election of Dividend Reinvestment Plan (DRP)
You can elect DRP by logging into Link’s Investor Centre (https://investorcentre.linkmarketservices.com.au/Login). Once you are logged in, please proceed to the “Payments and Tax” tab and select “Reinvestment Update”.