Like us, you might have noticed the BetaShares S&P 500 Equal Weight ETF (ASX: QUS) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the QUS ETF do for investors?
The BetaShares QUS ETF provides investors with equally-weighted exposure to the S&P 500. It seeks to reduce concentration towards the largest US companies and spread investments equally across all 500 companies in the index.
The BetaShares QUS ETF could be used by investors looking to gain exposure to a broad basket of US companies while avoiding concentration in a handful of ‘mega-caps’. This may reduce risk and provide the potential to outperform market-cap-weighted benchmarks.
2. Funds under management (FUM)
The BetaShares QUS ETF had $213.38 million of money invested when we last pulled the monthly numbers. Given QUS’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Don’t forget about the fees & costs
BetaShares charges investors a yearly management fee of 0.29% for the QUS ETF. This means that if you invested $2,000 in QUS for a full year, you could expect to pay management fees of around $5.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% 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.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the QUS ETF. Before you go any further, take a look at our free BetaShares QUS report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.