Betashares EX20 ETF (ASX:EX20)
The BetaShares EX20 ETF provides exposure to the largest 180 Australian shares, based on market capitalisation, excluding the top 20.
What does the EX20 invest in?
EX20 still invests in Australian shares which offer growth and income potential but it avoids 20 of the largest 200 Australian shares. To do so, it follows the NASDAQ Australia Completion Cap Index. You could buy all of these companies yourself using a share brokerage account, but that would be a very expensive and time-consuming process.
What do investors use EX20 for?
The BetaShares Australian Ex-20 Portfolio Diversifier ETF could be used by investors to get exposure to a broad basket of Australia’s medium and large public companies, which are likely to grow their profit over time and pay regular tax-effective dividends to their shareholders. Investors may also consider using the EX20 ETF if they are trying to avoid large Australian bank shares (CBA, NAB, ANZ, etc.) and miners (BHP, Rio Tinto, etc.). The largest 20 shares on ASX account for a large proportion of Australia’s share market.
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