Reports

New ETFs in Australia 2021

A summary of all the newly listed ASX ETFs in 2021.

The past 12 months saw 27 new ETFs being launched on the ASX and 19 ETFs closing down. As of March 2021, there were 220 ETFs on the ASX. One of the most noticeable trends was the large growth in thematic ETFs.

Thematic ETFs are ETFs constructed to invest in particular investment themes or sectors. In the past year, thematic ETFs have exploded, growing by over 400%, with ETFs in cloud computing, video gaming and clean energy coming to market. 

Generally, recently launched ETFs follow themes that have performed well over the short term. The recent positive performance can trick investors into placing bets against future performance. However, like most themes, they tend to mean revert (i.e. return to their long term average), and that can lead to market timing which is extremely hard to get right.

Despite the risks of thematic ETFs, it’s likely that thematic ETFs will overtake sector ETFs (which focus on broader economic and industry classifications like healthcare, property and financials) over the next couple years.

While thematic ETFs only make up 4% of the total market currently, they will likely overtake the 7% of assets in sector ETFs as investors shift to ETFs with a concentrated target exposure, with better narratives, that aligns with their personal preference and assessment.

Thematic ETFs: things to be aware of

High fees

Despite their popularity, it costs more to construct a thematic ETFs, which in turn, leads to higher fees. The average thematic ETF charges 0.59% per year in fees, which is five times the cost of a broad based share ETF.

Shorter life spans

Thematic ETFs can get terminated if they don’t attract enough money. They’re high-risk/high-reward bets, so it’s up to the investor to limit their exposure to thematic ETFs and focus on less risky, lower cost and more diversified products that focus on all sectors and themes.

New ETFs: Active funds launched on ASX

Active fund managers have always been shy of ETFs, preferring to invest via traditional mutual funds or listed investment companies (LICs). However, we have seen these fund managers recently favouring the ETF structure given the liquidity and tax efficient characteristics. Eight active strategies were launched on the ASX over the past year, including fund managers such as Magellan, Hyperion, Loftus Peak and Munro. 

New ETFs summary table by launch date (March 2020 – March 2021)

CodeFund NameSectorFeeLaunch Date
ICORiShares Core Corporate Bond ETFFixed Income & Cash 0.15%May’20
IYLDiShares Yield Plus ETFFixed Income & Cash 0.12%May’20
GGOVBetaShares Global Government Bond 20+ Year ETF – Currency HedgedFixed Income & Cash 0.22%May’20
AASFAirlie Australian Share Fund (Managed Fund)Australian Shares (active)0.78%Jun’20
HQLTBetaShares Global Quality Leaders ETF – Currency HedgedGlobal Shares (strategies)0.35%Jun’20
MKAXMontaka Global Extension FundGlobal Shares (active)1.25%Jun’20
HNDQBetaShares NASDAQ 100 ETF – Currency HedgedGlobal Shares (sectors)0.51%Jul’20
HETHBetaShares Global Sustainability Leaders ETF – Currency HedgedGlobal Shares (strategies)0.62%Jul’20
LNASETFS Ultra Long Nasdaq 100 Hedge FundGlobal Shares (strategies)1.00%Jul’20
SNASETFS Ultra Short Nasdaq 100 Hedge FundGlobal Shares (strategies)1.00%Jul’20
E200SPDR S&P/ASX 200 ESG FundAustralian Shares (strategies)0.13%Aug’20
DVDYVanEck Vectors Morningstar Australian Moat Income ETFGlobal Shares (strategies)0.35%Sep’20
ESPOVanEck Vectors Video Gaming and Esports ETFGlobal Shares (strategies)0.55%Sep’20
HLTHVanEck Vectors Global Healthcare Leaders ETFGlobal Shares (sectors)0.45%Sep’20
GOATVanEck Vectors Morningstar World Ex Australia Wide Moat ETFGlobal Shares (strategies)0.55%Sep’20
IIGFIntelligent Investor Australian Equity Growth Fund (Managed Fund)Australian Shares (active)0.97%Oct’20
VETHVanguard Ethically Conscious Australian Shares ETFAustralian Shares (strategies)0.16%Oct’20
MGOCMagellan Global Fund – Open Class Units (Managed Fund)Global Shares (active)1.35%Nov’20
LPGDLoftus Peak Global Disruption Fund (Managed Fund)Global Shares (active)1.20%Nov’20
MAETMunro Global Growth Fund (Hedge Fund)Global Shares (active)1.35%Nov’20
CLDDBetaShares Cloud Computing ETFGlobal Shares (sectors)0.67%Feb’21
ADEFApostle Dundas Global Equity Fund – Class D Units (Managed Fund)Global Shares (active)0.90%Feb’21
CLNEVanEck Vectors Global Clean Energy ETFGlobal Shares (sectors)0.65%Mar’21
ERTHBetaShares Climate Change Innovation ETFGlobal Shares (sectors)0.65%Mar’21
HYGGHyperion Global Growth Companies Fund (Managed Fund)Global Shares (active)0.70%Mar’21
QSMLVanEck Vectors MSCI International Small Companies Quality ETFGlobal Shares (strategies)0.59%Mar’21
VLUEVanEck Vectors MSCI International Value ETFGlobal Shares (strategies)0.40%Mar’21
If you want to find out which Australian ETFs attracted the most investors in 2021, head straight to our 2021 ETF report, and make sure you know exactly what you’re investing in. 


Investment Manager

Marc has previously worked for Morgan Stanley, AMP and KPMG. He holds a Bachelor of Business (Finance/Accounting) from the University of Technology Sydney (UTS), and has completed his Chartered Financial Analyst (CFA) Level 1.

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