POWERED BY MOMENTUM MEDIA
Global markets open opportunities for ETFs
Exchange-traded fund (ETF) managers are seeing favourable conditions for global equities, with cheap companies and a strong dollar making for good value.
BlackRock global investment specialist James Holt said the areas of global healthcare, consumer staples and IT companies are offering value for global investors at present.
"China is entering its next stage of development and becoming a more consumer-based economy. As a result, demand for middle-income consumer goods is on the increase," Holt said.
Hold said leading IT brands, which were expensive a decade ago, are now trading at very cheap levels.
As well as IT, healthcare companies are also cheap at the moment, and will only benefit from an ageing population, Hold said.
Meanwhile the global consumer staples sector offers diversification opportunities for Australian investors, as the sector is 30 times larger than Australia's domestic consumer staples sector.
Director of intermediary sales for iShares, Tom Keenan, said that ETFs were one of the most effective ways investors could access international markets, due to their high liquidity, low cost and ability to react to changing market conditions quickly and simply.
AUTHOR
Ashleigh McIntyre
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
