State Street Global Advisors (SSgA) has launched a new SPDR ETF in the Australian market, providing exposure to domestic shares paying high and sustainable dividends.
The SPDR MSCI Australia Select High Dividend Yield ETF tracks a proprietary index developed by MSCI and will start trading on the Australian Stock Exchange on 28 September.
The fund is designed for investors seeking stable income producing investments, with the potential for capital appreciation. The firm says it is ideal for investors nearing retirement, or seeking a reliable income stream because of the fund's objective to hold higher dividend-paying stocks.
SSgA says the launch represents the start of the next phase in its ETF strategy in Australia and within the Asia-Pacific region. The latest fund release follows the listing of the SPDR FTSE Greater China ETF on the Hong Kong Stock Exchange recently, as part of a broader business plan to increase the size and visibility of SPDR ETFs across Asia-Pacific.
The firm's senior managing director for Australia Rob Goodlad says: "The The ETF market has grown substantially since we launched the first Australian ETF in 2001.
"The growing maturity of the market and the increasing adoption of ETFs by retail as well as institutional investors demonstrates that this is an appropriate time to broaden our product suite and introduce new SPDR ETFs to Australian investors."
The new SPDR ETF has a fee of 35 basis points. SSgA also offers the SPDR S&P/ASX 200, the SPDR S&P/ASX 50 and the SPDR S&P/ASX 200 Listed Property Fund, in the Australian market.
The Australian ETF market had assets under management (AUM) of A$3.75bn as of 31 August 2010, according to the latest ASX data. State Street is the dominant provider of ETFs in the country, with AUM of A$2.9bn as of the end of August, accounting for 78% of the entire market.
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