1. Exposure
The BetaShares QOZ ETF provides exposure to a âfundamentally weightedâ index of 200 large Australian shares. This ETF focuses on weighting the portfolio with a focus on âeconomic importanceâ rather than market capitalisation, while also aiming to outperform traditional market-cap weighted indices.
The QOZ ETF could be used by investors to gain exposure to 200 large Australian companies, without weighting the holdings purely based on the shares market capitalisation. Please note: QOZ’s “fundamentally weighted” index will have a different performance and risk profile compared to a traditional sharemarket index, such as the ASX 200, which uses a company’s market capitalisation.
2. Funds under management (FUM)
The BetaShares QOZ ETF had $406.04 million of money invested when we last pulled the monthly numbers. Given QOZ’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 0.40% for the QOZ ETF. This means that if you invested $2,000 in QOZ for a full year, you could expect to pay management fees of around $8.00.
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 QOZ ETF. If you’re looking to do some further digging, be sure to read our BetaShares QOZ 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.
