The Australian ETF industry seems to be growing faster by the day, and one of the ETFs you might have your eye is the Betashares Australia 200 ETF (ASX: A200). In this article, we’ll provide a quick review of the A200 ETF.
1. Exposure
The Betashares A200 ETF provides exposure to the largest 200 Australian companies, based on market capitalisation. Unlike many other Australian shares ETFs, A200 uses the Solactive Australia 200 Index. This is virtually the same thing as the indices provided by S&P/ASX, as it also uses a market capitalisation weighting.
2. Funds under management (FUM)
The Betashares A200 ETF had $1598.49 million of money invested when we last pulled the monthly numbers. Given A200’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Management fees & costs matter
Betashares charges investors a yearly management fee of 0.07% for the A200 ETF. This means that if you invested $2,000 in A200 for a full year, you could expect to pay management fees of around $1.40.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the A200 ETF. If you’re looking to do some further digging, be sure to read our Betashares A200 report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
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