AUSTRALIA’S METAL METALS ETF, the second-largest in the world, has a long history of trading in a “market like no other”.
While it has not always been this way, its recent success has made it more relevant and attractive to investors.
“The price has increased more than 40 per cent since the index began trading on February 1, 2018, but that doesn’t make it any less important,” said James Waugh, a professor at the University of Sydney’s School of Business.
“[Its] a good indicator of where the market is.”
The Met Met Asset ETF is a benchmarked commodity benchmarking tool for investors to compare asset values.
The ETF was launched on Wednesday by the Australian Investment Management Association, which is Australia’s largest asset manager and investor lobby group.
In the past, investors would use a range of different metrics to determine their returns, including a market capitalisation, the number of ounces a stock is worth and its expected price per ounce for the coming year.
But in recent years, the Met Asset Index has risen from a single metric to more than a dozen, including the average price of a barrel of oil.
Analysts have called this an indicator of the broader strength of the Australian economy.
There is also a Met Index fund, which tracks a broad range of assets in the Australian market, but it does not have a specific price target.
It tracks an index of more than 50 asset classes, including commodities, which have been benchmarked in recent months, including gold, silver, oil and property.
On Thursday, the ETF’s performance in the US rose above that of the benchmark and surpassed the 50-point range.
Investors have taken note of the rise, and have put money into Met Asset since January.
Met Asset, which has about $500 million under management, had a record-high net profit of $2.4 billion, and is expected to be a big winner in the Met Australian Stock Index next year.