NZX adds to ETFs menu

Smartshares has signed a deal with BlackRock to list eight new exchange-traded funds (ETFs) on the NZX this June.

Monday, April 29th 2019, 6:00AM

Five of the new funds will provide international equity exposure to the US, European, Japanese, emerging markets and global markets, screening for environmentally and socially harmful activities.

Two ETFs will invest in robotics and automation, and in healthcare.

The final fund is a global aggregate bond ETF hedging to the New Zealand dollar.

Smartshares chief executive Hugh Stevens said it allowed investors and advisers to make asset allocation decisions across the screened funds.

It as possible to recreate a screened MSCI All Countries World Index out of the five global funds, or over-weight or underweight a particular global segment exposure.

He said BlackRock was the top ETF issuer in the world and it was notable that it had decided to enter New Zealand’s market via SmartShares rather than directly.

“We have been approached by many investors concerned about where their money is being invested. Many are wanting to invest, but not at the expense of the environment or socially irresponsible practices.

“Smartshares is offering ESG-friendly ETFs because we want to see more investment options in New Zealand that tailor to different values and beliefs, and we believe it is good for the environment and promoting a fair and responsible commercial landscape.”

Christian Obrist, head of BlackRock’s iShares business in Australasia said: “We are pleased to collaborate with Smartshares to enhance access for New Zealand investors to offshore listed ETFs and provide more choice for increasingly sophisticated investors in the market.

“We see more and better uses of ETFs being fuelled by demand from investors themselves, who are continually looking for innovative ways to access new exposures, achieve portfolio outcomes and make progress toward their investment goals.”

The funds:

• Smartshares Global Equities ESG ETF (NZX:ESG)
• Smartshares US Equities ESG ETF (NZX:USA)
• Smartshares Europe Equities ESG ETF (NZX:EUG)
• Smartshares Japan Equities ESG ETF (NZX:JPN)
• Smartshares Emerging Markets Equities ESG ETF (NZX:EMG)

The screens exclude companies that engage in contentious activities, including controversial weapons, civilian firearms, nuclear weapons, thermal coal, nuclear power, tobacco, oil sands and companies who have failed UN Global Compact rulings.

• Smartshares Automation and Robotics ETF (NZX:BOT)
• Smartshares Healthcare Innovation ETF (NZX:LIV)

BlackRock describes "megatrends" as powerful, transformative forces that could change the global economy, business environment, and society.

• Smartshares Global Aggregate Bond ETF (NZX:AGG)

Tags: ETFs Smartshares