The Fund will seek to achieve the investment objective by 
adopting a “full replication” strategy. 

The investment objective of the BetaShares FTSE RAFI Australia 200 ETF is to provide an investment return that tracks the performance of the FTSE RAFI Australia 200 Index (the “Index”), before taking into account fees and expenses.

Benefits of investing in the BetaShares FTSE RAFI Australia 200 ETF

• Performance - aims to produce superior long-term performance compared to products based on market cap weighted indices

• Diversification - with a single trade, investors can get exposure to the top 200 companies listed on the ASX as measured by fundamental size

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

• Liquidity - trades on ASX during the trading day like any share

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

About the Fund

• Provides exposure to a diversified portfolio of Australian equities, weighted in a way that is reflective of the economic footprint rather than the market capitalisation of its constituents

• Seeks to avoid potential of market cap indices to overweight stocks that are overvalued, and underweight stocks that are undervalued

• Breaks the link between price and index weight and so aims to produce superior long-term performance compared to using traditional market-cap weighted indices

• A core portfolio holding providing broad economic representation and transparency benefits

• A cost-effective complement and/or alternative to investments with active fund managers

Investment objective

The Fund aims to track the performance of an index (before fees and expenses) that comprises the top 200 companies listed on the ASX as measured by fundamental size.

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 allocation to domestic equities providing transparency and diversification benefits
2. Tactical exposure to the Australian share market
3. A low cost complement or alternative to active fund managers focussed on Australian equities

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 equities included in the Index are selected and weighted based on measures of the fundamental size of each company, rather than on market capitalisation. Four fundamental measures of firm size are used: sales, cash flow, book value, and dividends. See "Further Information About the Index below.

The Index comprises the 200 securities with the largest "fundamental values amongst liquid and tradable companies listed on the ASX.

This approach to indexing seeks to overcome the limitations of traditional indices based on market capitalisation, by using measures which do not depend on the fluctuations of market prices, while still maintaining the benefits of passive investment (lower turnover costs, broad economic representation and a transparent, rules-based process). An index based on fundamental values breaks the link between index weight and price and aims to produce superior long term performance compared to indices weighted using market capitalisation.

For more information on the Index, please see section 2 of the PDS.