VanEck launches new ‘Core+’ Diversified Active ETF suite

The VanEck ‘Core+’ suite of professionally managed balanced, growth and high-growth ETFs provide single trade exposure to globally diversified portfolios spanning Australian and international equities, fixed income and real assets such as global listed infrastructure, property and gold.

There are four key reasons these new ETFs will be different from other diversified ETFs on ASX:

1. Asset class breadth.

2. Investing beyond market beta by allocating to smart beta and active strategies.

3. Institutional grade Strategic Asset Allocation (SAA) that is assessed and updated quarterly.

4. Granular/targeted in our exposures, such as within fixed income, where we target fixed and floating and government in individual weights determined by our SAA and do not just use a single sleeve like the composite bond index.  

Each portfolio has been carefully designed using the same institutional asset allocation frameworks that underpin large-scale portfolios.

VanEck Asia Pacific CEO and Managing Director Arian Neiron said the approach of the new ‘Core+’ diversified active ETF suite was deliberate.

“What we are delivering to investors is simple in concept, but powerful in execution, a fully implemented, diversified portfolio in a single trade with full transparency. Investors will see through to the underlying securities, the exposures, the geographies. This is institutional grade portfolio construction, and we're making it accessible with one trade.  

“Our goal is not to predict markets with precision but to prepare portfolios to perform across a range of outcomes and to help you stay invested through cycles that test conviction.

“Markets are not static systems. They evolve driven by cycles in growth, liquidity, policy and behaviour. Portfolios that endure are not those built on a single philosophy, but those constructed with an appreciation for how different investment approaches perform across regimes. 

“At VanEck we have spent decades building capabilities across market capitalisation, systematic/smart beta insights, thematic and active management. Each has merit and each has limitations. The edge comes from knowing when and how to combine them,” Arian said. 

Each of the three ‘Core+’ funds has been calibrated to meet a different risk-return objective and aims to outperform its benchmark after fees. 

The VBAL Core+ Balanced portfolio is designed to provide a steady core for long-term investors who value resilience as much as return, and it has a return benchmark of CPI+3% p.a. 

The VGRO Core+ Growth portfolio is built to capture market upside with a modest defensive allocation providing ballast during market stress, and it has a return benchmark of CPI+4% p.a.

The VHGR Core+ High Growth portfolio is suited to investors with a long-term investment horizon, with a risk tolerance that seeks to maximise capital growth while accepting a higher degree of market variability, and it has a return benchmark of CPI+5% p.a.