How the QPON ETF fits into an ASX portfolio
The BetaShares QPON ETF provides investors with exposure to a portfolio of some of the largest and most liquid senior floating rate bonds issued by Australian banks.
Investors could use the QPON ETF to diversify an existing portfolio and gain exposure to Australian floating rate bank bonds, or to create a regular income stream from the monthly distributions offered by this ETF. A floating rate bond is a debt security that pays a regular coupon (interest) that varies over time – this differs from a fixed rate bond which pays the same rate of interest over the life of the bond.
QPON meets our minimum level for FUM
The BetaShares QPON ETF had $560.21 million of money invested when we last pulled the monthly numbers. Given QPON’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 Fixed interest – Australia 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 0.22% for the QPON ETF. This means that if you invested $2,000 in QPON for a full year, you could expect to pay management fees of around $4.40.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% 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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our BetaShares QPON 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.
