Van Eck Associates
] is putting its money on Australian ETFs. Jan Van Eck'
s Market Vectors announced via press release yesterday
that it took a majority stake in Australian Index Investments
earlier this month.
The company will be renamed Market Vectors Australia
, and it will aim to expand in the nascent Australian ETF business. Australian Index Investments already markets six ETFs comprising around AUD $30 million in AUM.
Australian Index Investments' current CEO, Annmaree Varelas
, will retain control.
The Wall Street Journal
also picked up on this news
, and provides a little background on the Australian ETF business. WSJ
reporter David Winning
writes that the ETF market is still "in its infancy" Down Under. There are only around 70 Australian ETFs with about $5 billion in combined AUM.
Market Vectors began selling ETFs in 2006, and with 49 funds, it's the eighth-largest ETP provider in the world.
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