Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

VanEck

  •   29 February 2024
  •      
  •   

VanEck launches ASX listed geared fund on flagship Australian equity strategy

Sydney, 29 February 2024 – VanEck, Australian pioneer of smart beta ETFs and one of the world’s largest ETF providers, has listed on ASX the VanEck Geared Australian Equal Weight Fund (Hedge Fund) (ASX: GMVW) a first of its kind in Australia and the most cost effective leveraged equity managed fund solution in Australia.

GMVW combines investors' capital and borrowed funds to invest in the VanEck Australian Equal Weight ETF (ASX: MVW), its flagship Australian equity strategy which launched 10 years ago.

MVW has outperformed1 the S&P/ASX 200 by 1.21% p.a. since inception in 2014 (data to 31 January 2024) and VanEck has demonstrated that the equal weight, factor indifferent strategy is well suited as a core allocation for Australian equity advisers and investors.  

With much debate as to the concentration of the S&P 500 and the ‘Magnificent Seven’, Australian investors, who have a significant domestic equity bias, are well aware of the risk that concentration can have. Australian equities concentration is far more pronounced than in the US, with little change in the composition of the S&P/ASX 200 top 10 companies over the last two decades. MVW provides three times more diversification than the S&P/ASX 2002, which is dominated by the big banks, CSL and BHP and has become one of the most concentrated markets in the world. Equal weighting has shown to outperform market cap strategies over the long term3.

Arian Neiron, CEO and managing director, VanEck Asia Pacific said: “GMVW is in response to significant adviser and investor demand and represents a game-changing opportunity for ASX investors in a ‘higher for longer’ interest rate environment. Furthermore, with many market participants questioning valuations of some of Australia’s largest companies, an equal weighting approach to Australian equities is a prudent alternative.”

“GMVW will give investors the opportunity to significantly enhance their returns. The return potential, in both directions, is amplified by gearing with no personal recourse for investors,” said Neiron.

The fund is responsible for the borrowing so investors in GMVW avoid the costs and complications of margin loans and CFDs. GMVW will also give Australians who run their own SMSF the opportunity to enhance their investment exposure to the maximum amount possible.

ASX code:

GMVW

Commencement date:

29 February 2024

Management fee /cost:

0.35% p.a.*

Gearing ratio:

45-60%

Stock number:

76

Dividend frequency:

Semi-annually

*GMVW charges a nil management fee. This is the indirect cost represented as a percentage of the gross asset value. If the average gearing level is 50%, the indirect cost will be 0.70% of the net asset value. Other fees and costs may apply. Please refer to the PDS.

1Past performance is not indicative of future performance.

2Based on the Herfindahl Index

3Why Equal Weighting Outperforms: The Mathematical Explanation, VanEck, June 2018.

Click for more information

 

  •   29 February 2024
  •      
  •   
banner

Most viewed in recent weeks

It’s time for LICs to die

A high-profile dividend cut and a prominent fund manager’s apology have reignited a long-running debate. If investors can access similar exposures more cheaply and efficiently elsewhere, what exactly is keeping LICs alive?

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

Testamentary trusts: Treasury has picked the wrong reading

A decades-old estate planning tool has survived one tax crackdown only to be caught by another. The surprise isn't who the reform is targeting, but who could end up paying the price for drafting choices made years ago.

How the typical Australian Family could save $844,350 in taxes

The value of a testamentary trust is not determined by wealth alone. Depending on circumstances, it can reduce the tax burden on inherited income, create efficiencies and help build intergenerational wealth.

The housing slide could become a crash

House prices are sliding across Australia, yet the most dangerous ingredient for a housing crash is still missing. If job losses surge amid growing economic risks, today's correction could become a historic property downturn.

Will investors be better or worse off under new housing tax changes?

Housing tax reforms have sparked warnings of market turmoil and promises of greater fairness. But after modelling nearly two decades of property data, the results suggest winners and losers may not be who many investors expect.

Latest Updates

SMSF strategies

Division 296: the initial moves to make before the windows close

What if the best superannuation strategy isn't about earning more, but acting before your options disappear? Several overlooked planning windows are narrowing, with consequences that can last for decades.

Planning

Avoid unnecessary CGT with this estate planning clause

A simple estate plan can create a ticking time bomb. One overlooked clause can pit spouses against children, delay inheritances, and potentially leave a family facing an unexpected tax bill worth hundreds of thousands of dollars.

Exchange traded products

The hidden trade-off in fixed income ETFs

Some investment trade-offs are immediately visible. Others are embedded in the way a portfolio is constructed. Understanding the difference may explain why similar-looking investments can produce surprisingly different results.

Retirement

The mortgage free retirement is fading

What happens when a generation reaches retirement carrying obligations previous generations largely avoided? New research suggests we may need to rethink both how much we need in retirement and what life could look like.

Retirement

The key question to inspire a confident and purposeful retirement

Most people spend decades planning for retirement. Far fewer plan for what happens when they get there. The difference may explain why so many find the transition harder and less fulfilling than expected, despite careful preparation.

Latest from Morningstar

Making the case for a 'good enough' portfolio

Some investors spend years chasing the perfect strategy. Others choose a path that’s simply good enough and move on. Which approach is more likely to deliver both better outcomes and a happier financial life over the long run?

Investment strategies

Is the US market as expensive as CAPE says?

Many investing ideas survive for decades. But that does not make them right. A famous valuation measure implies that US shares are dangerously expensive, but the evidence may point to a very different conclusion.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.