International Exchange Traded Funds (ETFs)

Conventional Exchange Traded Funds (ETFs) over international indices were launched on ASX in 2007. These ETFs can provide investors with a low cost and easy way to gain international exposure to both established and emerging markets while investors can take comfort that they trade and settle on ASX just like any other share.

Conventional International ETFs seek to replicate the performance of the overseas index and are traded and settled on ASX in Australian dollars. As the current range of international ETFs are not hedged, fluctuations in the exchange rate can affect the value of the portfolio.  You should always carefully read the product disclosure statement which provides detailed information related to the ETF's investment objectives, principal investment strategies, risks and costs, before deciding to invest or not.

The range of conventional international ETFs was expanded in 2009 to include a range of sector ETFs. Sector ETFs can assist investors build their portfolios to allow for increased exposure to certain industries while still achieving a broad diversification across companies.

 

The current issuers of conventional international ETFs are iShares and Vanguard Investments.

Market Making

Market Makers provide an important role in ensuring that buyers and sellers of ETFs and ETCs can transact. They provide liquidity to the market by providing quotes through the trading day and update their prices to reflect changes in the underlying securities.

ASX offers a Market Making incentive scheme to further promote tighter spreads and more liquidity in the ETF (Exchange Traded Funds) and ETC (Exchange Traded Commodity) markets. Market Making Participants receive Trading and Clearing Fee incentives from ASX when achieving minimum quoting benchmarks on a monthly basis. Each ETF / ETC is assigned a spread and liquidity requirement.

The table found in the following PDF (82KB) shows the Market Makers (MM) that have signed incentive contracts with ASX and the relevant ETF/ETCs.