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FTSE Russell index selected for first infrastructure ETF traded on ASX


— FTSE Developed Core Infrastructure 50/50 Index licensed by VanEck Australia
— First infrastructure index-linked ETF traded on the Australian Securities Exchange
— Index captures 155 infrastructure stocks representing the world’s Developed Markets

FTSE Russell, the global index provider, announces that VanEck Australia, one of Australia’s prominent providers of exchange traded products, has chosen to license the FTSE Developed Core Infrastructure 50/50 Index for its latest Exchange Traded Fund (ETF), the VanEck Vectors FTSE Global Infrastructure (Hedged) ETF.

Last year, after consultation with key market practitioners, the FTSE Infrastructure Index Series was expanded to include the 50/50 indexes, which provide an industry-defined interpretation of infrastructure and adjust the exposure to certain infrastructure sub-sectors. The expansion of the index series is in response to increased interest in this relatively young asset class, led by market participants diversifying into real assets such as infrastructure and real estate.

Sudir Raju, Managing Director ETP Relationships, Asia, FTSE Russell, said:
“We are delighted that VanEck Australia has selected one of FTSE Russell’s infrastructure indexes for its latest ETF. This listing is seen by many in the market as an innovative new step, as it is the first ETF globally to track the new FTSE Infrastructure 50/50 Index. Collaborating with VanEck Australia on this recent product launch further solidifies our commitment to the Australian investment marketplace.”

Arian Neiron, Managing Director of VanEck Australia, said:
“We have seen growing demand for diverse investment opportunities and the launch of our new infrastructure ETF gives Australian investors access to an asset class that they may not otherwise have access to. The FTSE benchmark is broadly regarded as the preferred global listed infrastructure securities benchmark given its construction and sector capping aligns with industry definitions.”

The FTSE Developed Core Infrastructure 50/50 Index is part of the FTSE Infrastructure Index Series and gives market participants an industry-defined interpretation of infrastructure that adjusts the exposure to certain infrastructure sub-sectors. The constituent weights for these indexes are adjusted according to three broad industry sectors:

  • 50% Utilities
  • 30% Transportation including capping of 7.5% for railroads/railways
  • 20% mix of other sectors including pipelines, satellites and telecommunication towers

The FTSE Core Infrastructure indexes focus on companies that own, operate and/or manage infrastructure structures or networks. Further details around index methodology and a supporting factsheet can be found here.

– Ends –

For further information:

Global Media
Lucie Holloway, +44 (0) 20 7797 1222
Mark Benhard / +1 212 314 1199
newsroom@lseg.com

Regional Contacts
Hong Kong: Fennie Wong,+852 2164 3267
Sydney: Laura McCrackle, +61 2 8823 3526

Notes to editors:

About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $10 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit www.ftserussell.com

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