ETF provider VanEck to launch 4 new ASX ETFs

ETF provider VanEck has just announced 4 new ETFs will soon hit the ASX boards. Find out which of these new investments might be right for you

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The world of exchange-traded funds (ETFs) has been one of the highest-growth areas of the share market over the past decade.

ETFs were barely around a decade ago, with only a handful of offerings available back then. But fast forward to today, and the Australian ETF sector is estimated to be worth more than $65 billion, according to reporting in the Australian Financial Review (AFR). Investors can't seem to get enough of low-cost index funds as well as thematic ETFs that offer easy exposure to entire industries in one single investment.

VanEck is a provider of ETFs in Australia and has several popular funds that ASX investors might be familiar with. These include the VanEck Vectors Australian Equal Weight ETF (ASX: MVW), the VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) and the VanEck Vectors Gold Miners ETF (ASX: GDX). The latter has recently made headlines after appreciating more than 35% in 2020 so far.

But VanEck has just announced that it's stable of ETFs is about to expand with 4 new offerings.

They will be:

  1. A Video Gaming and eSports ETF, with the proposed ticker code of ESPO
  2. A Global Healthcare Leaders ETF, with the proposed ticker code of HLTH
  3. A Morningstar World ex Australia Wide Moat ETF, with the proposed ticker code of GOAT
  4. A Morningstar Australian Moat Income ETF, with the proposed ticker code of DVDY

4 new VanEck ETFs to hit the market

The Video Gaming and eSports ETF will be an interesting addition, as (to my knowledge) there is no equivalent fund yet listed on the ASX. It will likely include US-based gaming shares like Activision Blizzard, Take-Two Interactive and EA Games. It might also include the US-listed giant Microsoft, which owns the Xbox brand of consoles. Japanese-listed gaming giants Sony (maker of PlayStation) and Nintendo (owner of the Pokemon and Mario brands) would also likely be considered. Chinese gaming giant Tencent Holdings is also a possibility.

In contrast, there are already a few ETF options to choose from that cover the global healthcare sector. These include the iShares Global Healthcare ETF (ASX: IXJ) and the BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG). Both of these funds own global healthcare giants like Johnson & Johnson, Roche and Pfizer. It will be interesting to see if this new VanEck fund will follow a similar mould. According to VanEck, the new fund will differentiate itself by only holding companies that were "world selected for their financial fundamentals focused on 'growth at a reasonable price'".

The Morningstar World ex Australia Wide Moat ETF looks to be modelled on VanEck's successful MOAT ETF. It only holds US-based companies that display characteristics of a 'moat' or a sustainable competitive advantage. The new GOAT ETF will likely expand this framework for shares outside the US and Australia.

Finally, the new DVDY fund looks to join the likes of the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) in selecting only high dividend payers for the ETF. Like MOAT and GOAT, DVDY will rely on analysis from Morningstar to determine which shares to hold. These will apparently be selected for their "quality, financial health and high dividends".

Foolish takeaway

I think when it comes to ETFs, the more choice and competition, the better. The variety gives ASX investors the ability to select funds that might be tailored to their specific circumstances. It will also assist with keeping fees low across the board. Thus, I'm happy to see some new VanEck EFTs join the ASX space. I look forward to seeing how these funds go at launch.

Motley Fool contributor Sebastian Bowen owns shares of VanEck Vectors Morningstar Wide Moat ETF and Vanguard Australian Shares High Yield Etf. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX shares could rise 20% to 50%

Analysts are tipping these shares to rise strongly over the next 12 months.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.
Technology Shares

Here's how the ASX 200 market sectors stacked up last week

ASX technology shares led the market with a 2.48% increase last week.

Read more »

A father helps his son look through binoculars during a family holiday or day out in the city.
Opinions

Up 190% in a year, why I think Life360 shares can keep soaring higher

This tech stock has plenty of potential.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Will the RBA finally cut interest rates next week?

Let's see what economists are saying about the central bank's meeting.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »