Benefits of investing in the BetaShares Australian Financials Sector ETF

• Diversification - with a single trade, investors can get exposure to the entire universe of companies in the Australian financials sector

• Cost effective - Fund tracks the performance of an index (no active manager' fees)

• Liquidity - available to trade on the ASX like any share

• Transparent - portfolio holdings, value of the Fund's assets and net asset value per unit available daily on our website

This product is likely to be appropriate for a consumer seeking capital growth and income distributions by providing exposure to the largest ASX-listed companies in the financials sector, excluding Real Estate Investment Trusts. The product may be used as a satellite/small component of a broader Australian equities allocation, or a tactical exposure to the Australian financials sector, within a portfolio where the consumer has a medium to long investment timeframe (5+ years), very high risk/return profile and needs daily access to capital. 

About the Fund

• Provides simple and transparent exposure to the Australian financials sector

• With a single trade, investors can get exposure to the entire universe of stocks in the index

• Holds the largest financial stocks on the ASX, including the "Big 4 banks

• Financials sector has typically exhibited high income yields relative to other sectors

• Benefit from dividends and franking credits from underlying stocks

Investment Objective

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to the largest companies involved in the financials sector listed on the ASX, excluding Real Estate Investment Trusts.

How to use this ETF in your portfolio

The Fund can be used to implement a variety of investment strategies. For example:

1. A core component of a domestic equities allocation providing transparency and diversification benefits
2. Tactical exposure to the Australian financials sector
3. Sector rotation - overweighting a portfolio to the financials sector to take advantage of prevailing market conditions

How we invest your money

The investment objective of the BetaShares Australian Financials Sector ETF is to provide an investment return that tracks the performance of the Solactive Australia Financials Ex- REITs Sector Index (the "Index), before taking into account fees and expenses.

The Solactive Australia Financials Ex-REITs Sector Index is a subset of the Solactive Australia 200 Index and comprises the shares of the largest companies involved in the financials sector listed on the ASX. The financials sector includes companies involved in activities such as major and regional banking, finance and leasing, investment banking and brokerage, investment management, insurance and insurance brokerage.

The constituents of the Index are derived from the eligible pool of securities within the Solactive Australia 200 Index, an index which generally comprises 200 of the largest securities by float- adjusted market capitalisation and liquidity listed on the ASX. All securities that are part of the Solactive Australia 200 Index and are classified as being in the financials sector according to their Factset sub-industry classification are included in the Index (excluding Real Estate Investment Trusts).

To be eligible for inclusion in the Index, a security must meet certain eligibility criteria, including:

• it must be listed on the Australian Securities Exchange;

• it must satisfy certain minimum liquidity and free-float requirements; and

• it must have traded for at least one month prior to being considered for selection.

The Index employs a free-float adjusted market capitalisation weighted methodology that adjusts for the percentage of a company's shares that are publicly available for trading. Under the methodology, the weighting of each constituent in the Index is determined by the float-adjusted market capitalisation assigned to the security.

The Index rebalances quarterly in March, June, September and December. Index changes take effect after the close of trading on the third Friday in the relevant month.

Solactive may, from time to time, exercise reasonable discretion as it deems appropriate in order to ensure Index integrity. The nature and method of calculation of the Index may change from time to time.

The Index Provider is not a related company of the Responsible Entity.

Further information on the Index will be available on the Solactive website at www.solactive.com and sub-pages.