VanEck unveils new range of active ETFs

VanEck has created the Core+ ETF range, launching three new ETFs to provide investors and advisers access to smart beta and active strategies spanning Australian and international equities, fixed income and real assets.

The Core+ suite, which consists of the VanEck Core+ Diversified Balanced Active ETF (VBAL); VanEck Core+ Diversified Growth Active ETF (VGRO); and VanEck Core+ Diversified High Growth Active ETF (VHGR), will be available on the ASX tomorrow.

The new funds provide broadened asset class breadth access and investments beyond market beta, while leveraging institutional grade strategic asset allocations (SAA) which will be updated quarterly.

They will also provide granular and refined exposure through each asset class.

"... 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," VanEck 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."

Specifically, VBAL is designed to reduce concentration risk by providing a steady core for long-term investors who value resilience as much as return, with a measured growth target of CPI+3% per annum.

Meanwhile, VGRO, with a return benchmark of CPI+4% p.a., will have a "modest" defensive allocation providing ballast during market stress.

Lastly, VHGR is suited to long-term investors tuned to have maximum capital growth at a higher degree of market variability and targets a return of CPI+5% p.a..

VanEck Asia Pacific chief executive Arian Neiron said the new approach has been carefully designed using the same institutional asset allocation frameworks that underpin large-scale portfolios.

"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," Neiron said.

"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."