Smartshares, Blackrock to launch 8 new ETFs on NZX

The exchange-traded funds are set to debut on the exchange in June. Photo / File

NZX's Smartshares and Blackrock, the world's biggest asset manager, will launch eight new exchange traded funds (ETFs) on the exchange this June.

The funds will have environmental and social responsibility (ESG) themes and will offer investors exposure to "megatrends" and global bonds, Smartshares said.

Chief executive Hugh Stevens said Smartshares, which launched New Zealand's first ETF in 1996, had been approached by investors who were concerned about there their money was being invested.

"Many are wanting to invest, but not at the expense of the enviorment or socially acceptable practices," Stevens said in a statement.

"Smartshares is offering ESG-friendly ETFs because we want to see more investment options in New Zealand that tailor to different values and beliefs, and we believe it is good for the environment and promoting a fair and responsible commercial landscape," he said.

Five new funds will provide international equity exposure to the US, European, Japanese, emerging markets and global markets.

Each fund screens out environmentally or socially harmful activities, such as the firearms and nuclear weapons industries.

Two ETFs in the suite will invest in the robotics and automatoin, and healthcare, described by Blackrock as "megatrends" - powerful, transformative forces that could change the global economy, business environment, and society.

"The automation and robotics ETF will give investors access to business areas including artificial intelligence and e-commerce logistics, while the healthcare innovation ETF will tap into areas such as personalised medicine and immunotherapy," Blackrock said.

Smartshares will also offer a Global Aggregate Bond ETF hedged to the New ZEaland dollar, which offers access to passive fixed income exposure.

Christian Obrist, head of BlackRock's iShares business in Australasia, said the new funds would offer investors more choice.

"We see more and better uses of ETFs being fuelled by demand from investors themselves, who are continually looking for innovative ways to access new exposures, achieve portfolio outcomes and make progress toward their investment goals," he said.

Smartshares is New Zealand's only issuer of ETFs listed on the NZX Main Board, and across six registered schemes manages over $3.1 billion on behalf of more than 70,000 investors.