Industry Updates

BetaShares lists active hybrid and sustainability ETFs

David Tuckwell

Today's ETF listings from around the world


BetaShares is listing two ETFs on the Australian Stock Exchange

Aussie issuer BetaShares is listing two new ETFs on the ASX, one of which is actively managed and tracks hybrids, the other of which is an SRI ETF. They are:

  • BetaShares Active Australian Hybrids Fund (HBRD)

  • BetaShares Australian Sustainability Leaders ETF (FAIR)

HBRD is actively managed and will invest in a portolio of hybrid securities, bonds and cash. What it invests in and in what ratios will be at the HBRD's managers' discretion. HBRD can go all the way up and down the capital structure depending on how management assesses risk. If risk is high, HBRD can fully invests its assets in cash and floating rate notes. If risk is judged to be lower HBRD can, in theory at least, be fully invested in higher yielding hybrids.

Hybrid securities - sometimes called preferred shares in the US - are an attractive asset class to many investors because their yields are substantially higher than in cash and bonds. In Australia, they also come with volatility levels that aren't too far from senior bonds. HBRD's expense ratio will be 0.45%.

FAIR will track the Nasdaq Future Australian Sustainability Leaders Index, which puts up a fairly intensive SRI screen. FAIR will exclude fossil fuel companies, miners, and banking majors and invest instead in companies judged to be doing the right thing. It is the Australian-specific version of BetaShares Global Sustainability Leaders ETF (ETHI), which tracks a global version of the same Nasdaq index. FAIR's expense ratio will be 0.30%.


PowerShares cross-lists preferred shares ETF into Switzerland

PowerShares is cross-listing its preferred shares ETF into Switzerland, the PowerShares Preferred Shares UCITS ETF (PRFD).

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