Fundamental Index ETF arrives on the ASX
BetaShares has today announced the launch of the first exchange traded fund on the Australian Securities Exchange (ASX) to use a fundamental index methodology.
The BetaShares FTSE RAFI Australia 200 ETF will trade under the ASX Code “QOZ” and aims to provide an investment return that tracks the performance of the FTSE RAFI Australia 200 Index before fees and expenses. The ETF is designed to provide investors with exposure to the top 200 companies listed on the ASX, weighted in a way that is reflective of their economic footprint rather than their market capitalisation.
This methodology aims to produce superior long term performance compared to traditional market cap weighted indices. It seeks to do this by improving on some of the limitations of market capitalisation based methodologies, while still maintaining the benefits of passive investment (lower turnover costs, broad economic representation and a transparent, rules-based process).