What is the EX20 ETF used for?
The BetaShares EX20 ETF provides exposure to the largest 180 Australian shares, based on market capitalisation, excluding the top 20.
The BetaShares Australian Ex-20 Portfolio Diversifier ETF could be used by investors to get exposure to a broad basket of Australia’s medium and large public companies, which are likely to grow their profit over time and pay regular tax-effective dividends to their shareholders. Investors may also consider using the EX20 ETF if they are trying to avoid large Australian bank shares (CBA, NAB, ANZ, etc.) and miners (BHP, Rio Tinto, etc.). The largest 20 shares on ASX account for a large proportion of Australia’s share market.
Keep an eye on FUM
The BetaShares EX20 ETF had $235.22 million of money invested when we last pulled the monthly numbers. Given EX20’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.
Fees and costs for investors
BetaShares charges investors a yearly management fee of 0.25% for the EX20 ETF. This means that if you invested $2,000 in EX20 for a full year, you could expect to pay management fees of around $5.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the EX20 ETF. Before doing anything, take a look at our BetaShares EX20 report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
