BetaShares Australian EX-20 Portfolio Diversifier ETF (EX20)
About this Fund
|FUND MANAGER||BetaShares Capital|
|ASSET CLASS||EXCHANGE TRADED FUNDS|
The Fund will seek to achieve the investment objective by adopting a “full replication” strategy. See section 2.1.2 for further information
The investment objective of the BetaShares Australian Ex-20 Portfolio Diversifier ETF is to provide an investment return that tracks the performance of the Solactive Australia ex 20 Index(the “Index”), before taking into account fees and expenses.
|BENCHMARK||Nasdaq Australia Completion Cap Index|
|FUND SIZE||Nasdaq Australia Completion Cap Index|
|NO. OF HOLDINGS||Around 180|
Benefits of investing in the BetaShares Australian EX-20 Portfolio Diversifier ETF
|RISK LEVEL||high risk/return profile|
This product is likely to be appropriate for a consumer seeking capital growth by providing exposure to the 180 largest companies on the ASX, after excluding the 20 largest, to be used as a core allocation to Australian equities, or a tactical exposure to the Australian sharemarket, within a portfolio where the consumer has a medium to long investment timeframe (5+ years), high risk/return profile and needs daily access to capital
About the Fund
The Fund aims to track the performance of an index (before fees and expenses) which provides exposure to approximately 180 stocks listed on the Australian Securities Exchange, ranked from number 21 to number 200, based on their market capitalisation.
How to use this ETF in your portfolio
The Fund can be used to implement a variety of investment strategies. For example:
How we invest your money
The Fund will seek to achieve the investment objective by adopting a "full replication strategy. See section 2.1.2 of the PDS for further information.
The Index employs a float adjusted modified market capitalization weighted methodology. Under the methodology no industry can have a weight of more than 25% in the Index and no single stock can have a weight of more than 6% in the Index.
To be eligible for inclusion in the Index, a security must meet certain eligibility criteria, including:
The Index is evaluated annually in March and the above eligibility criteria are applied using market data through the end of January. The securities ranked between 21 and 200 by float adjusted market capitalization are selected. Security additions and deletions are made effective after the close of trading on the third Friday in March.
Additionally, if at any time during the year other than the annual evaluation, an Index security no longer meets the eligibility criteria, or is otherwise determined to have become ineligible for inclusion in the Index, the security is removed from the Index and is not replaced.
The Index employs a float adjusted modified market capitalisation weighted methodology. Under the methodology:
At each quarter, the Index is rebalanced such that the maximum weight of any industry does not exceed 25% of the Index. The excess weight of any capped industry is distributed proportionally across the securities in the remaining industries. If after redistribution, another industry's weight is greater than 25%, the process is repeated until no industry's weight is greater than 25%. Simultaneously, the securities are reviewed to ensure that no single security is greater than 6%. If a security is greater than 6%, it is capped at 6% and the excess weight is distributed proportionally across the remaining Index Securities.
The modified weighting methodology is applied to the float- adjusted market capitalization of each Index security, using the last sale price of the security at the close of trading on the last trading day in February, May, August and November. Index changes are effective after the close of trading on the third Friday in March, June, September and December.
The Index is a total return index, which means that it reinvests cash dividends on the relevant ex-dividend date (the date on which the relevant shares no longer come attached with the right to receive the declared dividend).
Nasdaq 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.
Further information on the Index is available on the Nasdaq website at https://indexes.nasdaqomx.com/Index/Directory/.