Raising the benchmark with QOZ

Outperformance opportunity with low management fees of only 0.40% per annum

The BetaShares FTSE RAFI Australia 200 ETF (ASX: QOZ) aims to track an innovative index of Australian shares.

Broad Australian sharemarket exposure

QOZ was launched in 2013 and gives investors exposure to the 200 largest listed companies on the Australian sharemarket, weighted by economic size. The fund’s holdings therefore include our major banks, resource companies and retailers like Woolworths.

A smarter weighting approach

The index that QOZ aims to track is innovative in that it is not weighted by market capitalisation like many of the benchmark indices tracked by other ETFs.

Instead, each company in the index that QOZ aims to track is weighted by measures of the company’s importance in the economy, for example, cashflow and sales. As weightings are therefore not based on market prices, the composition of QOZ’s portfolio tends not to be influenced by the effects of market sentiment and thus market speculation.

Long-term outperformance potential with low fees

Along with management fees of only 0.40% per annum, QOZ aims to produce superior long-term performance compared to traditional market capitalisation weighted indices. The index which QOZ aims to track has historically outperformed the traditional benchmark S&P/ ASX 200 Index over the longer term as at 30 June 2017:

Total Return FTSE RAFI Australia 200 Index S&P/ ASX 200 Index Outperformance
1 YR 20.34% 14.09% +6.25%
3 YR (P.A) 8.03% 6.63% +1.40%
5 YR (P.A) 13.51% 11.81% +1.70%
Inception (May 1992) 11.55% 9.35% +2.19%

Table shows performance of underlying index relative to the S&P/ASX 200 Index, not ETF performance, and does not take into account ETF management costs, which would reduce returns. You cannot invest directly in an index. Returns for periods longer than one year are annualised. Past performance is not an indicator of future performance of index or ETF. The FTSE RAFI Australia 200 Index was launched on 10/8/2009. Index returns prior to launch are simulated based on Research Affiliates’ patented non-capitalisation weighted indexing system, method and computer program product. Actual investment results may differ from simulated results. Source: Bloomberg, FTSE.

Learn More Visit the BetaShares FTSE RAFI Australia 200 ETF Page