Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper
READ NOW

Investment

Betashares launches diversified ETF suite

Betashares has expanded its core investment range with the launch of four diversified exchange traded funds.

The new lineup comprises the Betashares Diversified High Growth ETF (ASX: DVHG), Betashares Diversified Growth ETF (ASX: DVGR) and Betashares Diversified Balanced ETF (ASX: DVBA), each carrying a management fee of 0.19% per annum.

The ETFs provide professionally constructed portfolios spanning Australian, developed and emerging market equities, global listed infrastructure, and Australian and global investment grade bonds, with investors able to select a portfolio aligned to their preferred level of risk.

Betashares chief executive Alex Vynokur said the funds were designed to simplify portfolio construction while keeping costs low.

"Building a strong portfolio requires thoughtful asset allocation, disciplined rebalancing and a focus on costs," Vynokur said.

"These funds bring all three together in a single, professionally constructed investment solution, delivered through familiar and convenient structure of an ETF."

Betashares said the all-in-one structure also has the potential to deliver more tax efficient outcomes than holding the underlying investments directly as Australia prepares for upcoming capital gains tax changes.

Alongside the diversified range, the firm also introduced the Betashares Diversified Credit Income ETF (ASX: DCRD), which combines exposure to senior floating rate bank bonds, subordinated bank debt and interest rate hedged Australian investment grade corporate bonds.

The ETF carries a management fee of 0.22% per annum and is designed to deliver regular monthly income while seeking relative capital stability.

The launch comes as investors continue searching for reliable income sources amid declining dividend yields on Australian equities and the phased removal of bank hybrids.

As of August 7, the underlying bond portfolio had a yield to worst of approximately 5.28% per annum, net of fees, although Betashares noted yields are subject to change.

Vynokur said the broader suite gives investors greater flexibility when building long term portfolios.

"Our growing range of professionally constructed, multi asset ETFs give Australians a cost-effective way to build more diversified portfolios and invest with confidence over the long term," he said.

The launches further strengthen Betashares' position in the cash and fixed income ETF market, where it manages $18.6 billion in assets.

Read more: Alex VynokurBetashares Diversified Credit Income ETF ASXBetashares Diversified High Growth ETF ASX