ETF Shares introduces three ETFs on Cboe

ETF Shares will debut three ETFs on Cboe Australia tomorrow in a bid to stake a claim in the "highly concentrated" market.

ETFS US Quality ETF (BEST), ETFS US Technology ETF (WWW) and ETFS Magnificent 7+ ETF (HUGE) all invest in US shares and charge a management fee of 0.29%.

BEST invests in the largest 100 US stocks based on superior quality characteristics, defined as free cash flow margin, and free cash flow return on invested capital.

WWW focuses on large and liquid US technology companies, while HUGE focuses on the 10 largest US companies listed on the NASDAQ.

Last week, ETF Shares flagged it was entering the local ETF market.

Cliff Man and David Tuckwell, who previously worked together at Global X, co-founded ETF Shares. Man serves as chief executive while Tuckwell is the chief investment officer.

"Australia's ETF market has grown rapidly but remains highly concentrated. Our goal is to inject meaningful competition into the index ETF space - something advisers and investors have been missing," Man said.

"This highly concentrated market benefits no one but the incumbents - and we think our entry will shift that dynamic. Without giving away too much during the exposure period, we expect our presence in the market will lower fees and increase competition from day one."

Tuckwell said that ETF Shares will target the adviser market, the primary driver of ETF flows in Australia.

"We understand the local advice landscape, including the regulatory shifts following the Royal Commission. That knowledge, combined with our product expertise, positions us to serve advisers in a way other providers simply can't," Tuckwell said.

ETF Shares is backed by ETFS Capital, the venture capital firm of Graham Tuckwell, who is David's father.

VanEck estimates that the local ETF market hit $249.4 billion at the end of March based on a total number of 410 ETFs.

Inflows reached about $3 billion during the quarter, with gold-based ETFs comprising five of the top 10 best-performing ETFs.