How the A200 ETF fits into an ASX portfolio
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.
The Betashares A200 ETF could be used by investors to gain exposure to a diversified basket of Australia’s largest public companies, which are likely to grow their profit over time and pay regular dividends to their shareholders.
A200 meets our minimum level for FUM
The BetaShares A200 ETF had $2280.01 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.
What about management fees and costs?
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 0.5% 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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our BetaShares A200 report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
