NZX boosts exchange traded funds

NZX's Smartshares unit has announced it will launch nine more exchange traded funds to join the existing 10.

The Wellington-based stock market operator has registered prospectuses for nine ETFs to invest in underlying funds offered by Vanguard Group, the world's biggest mutual fund company with about $US3 trillion under management.

Investors will get exposure to a number of developed and emerging markets, with dividends paid in New Zealand dollars.

NZX intends to broaden the range of investment products for local investors, funds management head Aaron Jenkins says.

“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 has been boosting its exchange traded funds over the past six months, to benefit from growth in the New Zealand funds management sector, which is expected to increase at an annual rate of between 10-15% over the next 10 years.

To accelerate growth of its Smartshares ETFs, NZX completed the purchase of SuperLife in January for $20 million upfront in cash and NZX shares and a further $15 million, provided the fund manager meets growth targets.

Quotation on the main board is expected to start on July 29.

Shares of NZX last traded at $1.05 and have fallen 15.7% in the past year.

The new funds:

1. The US 500 Trust will track 500 large securities listed on the NYSE or Nasdaq markets.
2. The Europe Trust will track securities in developed European markets including Germany, Switzerland and the UK.
3. The Asia Pacific Trust will track securities in developed Asia Pacific markets, including Japan, Singapore and Australia.
4. The Emerging Markets Trust will track securities from emerging markets including Brazil, China, and India.
5. The Total World Trust will track securities from both developed and emerging markets including Hong Kong, Norway, and the US.
6. The US Large Value Trust will track large value securities listed on the NYSE or Nasdaq markets.
7. The US Large Growth Trust will track large growth securities listed on the NYSE or Nasdaq markets.
8. The US Mid-Cap Trust will track mid-cap entities listed on the NYSE or Nasdaq markets.
9. The US Small-Cap Trust will track small-cap entities listed on the NYSE or Nasdaq markets.