The Fund invests in a portfolio of small company shares listed on the ASX.

Benefits of investing in the BetaShares Australian Small Companies Select Fund

• Performance - aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over the medium to long term

• Diversification - with a single trade, investors can get exposure to a portfolio of high quality, profitable Australian small companies, providing diversification across industry sectors and individual securities

• Portfolio completion - Fund provides access to a portfolio that excludes larger stocks to which many investors are already exposed

• Cost effective - Fund's management fee significantly lower than most actively managed funds that invest in Australian small companies

• Liquidity - available to trade on ASX like any share

This product is likely to be appropriate for a consumer seeking capital growth by providing exposure to Australian small companies, to be used as a satellite/small allocation to Australian equities, 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

• The Fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over the medium to long term (after fees and expenses) by investing in a portfolio of high quality, profitable small companies

• Portfolio constructed using a series of screens aiming to identify companies with positive earnings and a strong ability to service debt

• Relative valuation metrics, price momentum and liquidity are also evaluated as part of the stock selection process

• Provides a core portfolio holding for Australian small companies allocations, which provides the potential to outperform the benchmark index

• Low-cost alternative to other funds focused on Australian small companies

Investment objective

The Fund aims to provide investors with capital growth and income from a portfolio of small company shares listed on the ASX. The Fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over the medium to long term (after fees and expenses.)

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 portfolio holding for Australian small companies allocations, which provides the potential to outperform the benchmark index
2. A simple, low-cost way to instantly diversify an Australian equities portfolio and reduce portfolio concentration to individual securities or market sectors
3. Tactical exposure to the smaller end of the Australian share market
4. A low cost alternative to other funds focused on Australian small companies

How we invest your money

The Responsible Entity will seek to invest the Fund's assets in a portfolio of high quality, profitable small companies that will be drawn from the universe of ASX-listed stocks that are generally outside the 100 largest by market capitalisation (but generally within the 350 largest by market capitalisation).

The Fund's portfolio will typically consist of 50 to 100 stocks from this universe. In constructing the portfolio, the Responsible Entity will use a series of screens that aim to identify companies with positive earnings and strong ability to service debt. Relative valuation metrics and price momentum are also evaluated as part of the stock selection process.

The Responsible Entity also takes into account the liquidity characteristics of stocks in constructing and managing the portfolio, with a view to selecting stocks that are more liquid relative to other small companies.

Generally, no stock in the portfolio is expected to exceed 5% of the Fund's Net Asset Value at the time of purchase.

The Fund may use exchange-traded derivatives, such as futures, where this may help to achieve the Fund's investment objective.

The Fund may also invest in ETFs (which may include ETFs managed by the Responsible Entity) quoted on the ASX that invest in listed Australian companies, provided such ETFs obtain their investment exposure through direct investment in underlying physical assets.