NZX plans new international trade funds

  • 22/07/2015
NZX plans new international trade funds

NZX, the stock market operator, plans to launch nine new exchange traded funds to offer investors exposure to a raft of international stock markets.

The Wellington-based company's Smartshares unit has registered a prospectus to launch the new ETFs, which will invest in underlying funds offered by Vanguard, the world's biggest mutual fund company with about $US3 trillion ($NZ4.56t) under management, NZX says in a statement.

The new ETFs take Smartshares' offering to 19, with 10 existing funds offering exposure to Australian and New Zealand shares.

Smartshares' range of low cost index-based ETFs will provide New Zealand investors with an easy way to gain exposure to international equities, with the added benefit that dividends are paid in New Zealand dollars, says head of funds management Aaron Jenkins.

"The launch of these new ETFs is a terrific opportunity for investors to gain exposure to some of the world's largest listed companies, many of which we often connect with as consumers."

NZX expanded its funds management business this year with acquisition of Superlife, which it plans to use to accelerate growth of the Smartshares unit. It launched three new ETFs in May, giving investors exposure to Australia's resource and financial sector and dividend-paying New Zealand stocks.

The new ETFs track a range of securities listed on the New York Stock Exchange and Nasdaq, European markets, Asian markets including Japan, Singapore and Australia, and emerging markets such as Brazil, China and India.

NZX shares last traded at $1.05, and have declined 10 percent this year.