What is the QFN ETF used for?
The BetaShares QFN ETF is a more unique ETF that invests in financial companies from within the ASX 200, while excluding A-REITs. This ETF has a substantial exposure to the âBig 4â Australian banks.
The BetaShares QFN ETF could be used by investors looking to invest in the Australian financial sector, while avoiding direct exposure to real-estate investment trusts and property related companies. These Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
Keep an eye on FUM
The BetaShares QFN ETF had $52.27 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as BetaShares, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
Fees and costs for investors
BetaShares charges investors a yearly management fee of 0.34% for the QFN ETF. This means that if you invested $2,000 in QFN for a full year, you could expect to pay management fees of around $6.80.
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 QFN ETF. Before doing anything, take a look at our BetaShares QFN report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
