If you’re looking for an ASX ETF in the Australian shares sector, chances are, the Betashares FTSE RAFI Australia 200 ETF (ASX: QOZ) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the QOZ ETF
The BetaShares QOZ ETF provides exposure to a ‘fundamentally weighted’ index of 200 large Australian shares. This ETF focuses on weighting the portfolio with a focus on ‘economic importance’ rather than market capitalisation, while also aiming to outperform traditional market-cap weighted indices.
QOZ meets our minimum market cap (FUM) criteria
The Betashares QOZ ETF had $247.44 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.
QOZ ETF fees explained
Betashares charges investors a yearly management fee of 0.4% 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 0.5% 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.
Putting it all together
If you’re weighing up investing in QOZ, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Betashares QOZ report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
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