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BetaShares S&P 500 Equal Weight ETF (QUS)

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101788-2023-01-06-02:20.pdf
FUND MANAGER BetaShares Capital
ASX Code QUS*
APIR
ASSET CLASS EXCHANGE TRADED FUNDS
INVESTMENT STYLE The Fund provides exposure to 500 leading listed U.S. companies, with each holding in the index weighted equally.
INVESTMENT PROFILE The Fund aims to track the performance of the Benchmark (before fees and expenses).
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 17-12-2014
BENCHMARK S&P 500 Equal Weight Index
FUND SIZE S&P 500 Equal Weight Index
DISTRIBUTION FREQUENCY Half-yearly
NO. OF HOLDINGS Around 500
FEES 0.38% p.a.
STRUCTURE

Benefits

Benefits

Benefits of investing in the BetaShares S&P 500 Equal Weight ETF

  • Portfolio diversification & reduced concentration - gain exposure to the performance of 500 leading U.S. companies. Equal weighting approach reduces the risk of the portfolio being heavily exposed to a small number of mega-cap companies
  • Simple, effective methodology - the equal-weighted methodology is simple, yet has been effective. The S&P 500 Equal Weight Index has outperformed the market cap-weighted S&P 500 Index since inception*
  • Long-term outperformance potential - by removing the link between the price of a share and its weight in the index, the equal weight approach aims to outperform comparable traditional indexes over time by selling higher priced shares while buying those which are lower priced, through regular rebalancing
  • Cost-effective - QUS aims to track the performance of an index (no active manager' fees)
  • Reduced administration - as an Australian domiciled fund, investors do not need to fill out W-8BEN forms, or risk any potential U.S. estate tax issues

*Based on performance over period from index inception date (8 January 2003) to 31 December 2020.

RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

About the Fund

The BetaShares S&P 500 Equal Weight ETF provides access to an equally weighted portfolio of 500 leading listed U.S. companies, offering potential to outperform the market-cap weighted S&P 500 Index.

Investment objective

The investment objective of the BetaShares S&P 500 Equal Weight ETF is to provide an investment return that aims to track the performance of the S&P 500 Equal Weight Index (the "Index), before taking into account 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:

  • A core component of a global equities allocation providing diversification benefits
  • Tactical exposure to the U.S. sharemarket
  • A cost-effective complement or alternative to active fund managers focused on U.S. equities

Mandate

How we invest your money

The investment objective of the BetaShares S&P 500 Equal Weight ETF is to provide an investment return that aims to track the performance of the S&P 500 Equal Weight Index (the "Index), before taking into account fees and expenses.

The Index is the equal-weight version of the widely-used S&P 500 Index, which comprises 500 leading U.S.-listed companies and covers approximately 80% of available market capitalisation across industry sectors of the U.S. economy. The Index includes the same constituents as the capitalisation weighted S&P 500 Index, but each company in the Index is allocated a fixed weight, being 0.2% of the index total, at each quarterly rebalance.

For more information on the Index, please see pp 36-7 of the PDS.