Best Spe­cialty ETFs

GOLD WIN­NER STATE STREET GLOBAL AD­VIS­ERS As­sets such as prop­erty and in­fra­struc­ture pro­vide di­ver­si­fi­ca­tion and reg­u­lar in­come

Money Magazine Australia - - CONTENTS -

State Street’s win­ning SPDR S&P/ASX 200 Listed Prop­erty ETF is a low-fee en­try into 20 Aus­tralian listed prop­erty trusts that pay out a solid, tax­ef­fec­tive in­come.

It paid a yield of 7.4% over the year to the end of Septem­ber 2018. The ETF tracks the S&P/ ASX 200 A-REIT In­dex and in­cludes A-REITs such as Scen­tre (19% of as­sets), Good­man (15%), Dexus (9%), GPT (8.5%), Uni­bailRo­damco-West­field (8%), Stock­land (8%), Vicin­ity Cen­tres (7%), Mir­vac (7%), Char­ter Hall (3%) and In­vesta Of­fice (2.6%). The com­pa­nies are diver­si­fied across the re­tail, of­fice and in­dus­trial sec­tors.

The in­vest­ment man­age­ment fee of 0.40% is around a third of the av­er­age fee on an ac­tively man­aged A-REIT.

In equal sec­ond place is the Van­guard Aus­tralian Prop­erty Se­cu­ri­ties In­dex ETF, which tracks the broader S&P/ASX 300 A-REIT In­dex. It holds around 30 A-REITs and in­cludes some smaller listed prop­erty trusts as well as the big ones such as Scen­tre, Good­man, Mir­vac, Dexus and Stock­land. It paid a div­i­dend yield of 8.94% over the year to the end of Septem­ber 2018, charg­ing a low fee of 0.23%.

In equal sec­ond is Mag­el­lan’s In­fra­struc­ture (cur­rency hedged) ETF, which in­vests in global as­sets such as toll roads, air­ports, wa­ter util­i­ties and gas and en­ergy in­fra­struc­ture. Some of its in­vest­ments, such as At­lantia, which owned the bridge in Genoa, Italy, that col­lapsed in Au­gust, have hurt the fund. But oth­ers, such as gas dis­trib­u­tor Atmos En­ergy, have per­formed strongly.

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