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Betashares A200

Discussion in 'Investing Strategies' started by Jay, 9th May, 2018.

  1. Jay

    Jay Member

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    This has a MER of 0.07%. What are the downsides to this ETF?
     
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  2. twisted strategies

    twisted strategies Well-Known Member

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    first of all i note A200 is described as an ETP ( not ETF )

    what are the underlying assets ?? are they a basket of real shares , or a collection of derivatives and options .. 'exposure' is NOT the same as ' holdings '

    ( either choice has strengths and flaws but are NOT the same thing )

    sounds like some extra research ( and thinking) needed

    Underlying Index Characteristics
    INDEX SOLACTIVE AUSTRALIA 200 INDEX
    NUMBER OF COMPONENTS 200 ( not stocks )

    take care
     
  3. twisted strategies

    twisted strategies Well-Known Member

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    Betashares Australia 200 ETF (A200) brings extreme low cost ETFs to Australia

    Betashares Australia 200 ETF (A200) brings extreme low cost ETFs to Australia

    *** A200 tracks a newly created index, the Solactive Australia 200 Index. The index is so new in fact that we can’t yet find it on Solactive’s website.

    Whilst all indexes are designed to track the Australian share market by market capitalisation, the devil can be in the detail. For example the S&P/ASX 200 index has certain eligibility criteria around a company’s liquidty. Nevertheless, we expect portfolios to be so similar in their construction that any differences could be called a rounding error.

    A large proportion of an ETFs cost is associated with the index it tracks, with fees required to be paid by the ETF issuer to the index provider. We expect a large factor of Betashares being able to offer A200 at such a low cost is the fact that they have used Solactive to create the index, rather than the much better known (and likely more expensive) Standard & Poors. ***

    if A200 uses a derivative mix , of course it will be cheaper to operate ( paying pennies in the dollar for each share exposure )

    should A200 NOT contain real shares .. how will the div. yields ( especially special divs capital returns and take-over premiums ) be calculated ??
     
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  4. Jay

    Jay Member

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  5. twisted strategies

    twisted strategies Well-Known Member

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    like a nest of snakes , the details on ETFs/ETPs ... so far my issue is the lack of tiny details readily available .

    ( i have nearly been bitten elsewhere before )

    cheers !!!
     
  6. Hodor

    Hodor Well-Known Member

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    https://www.betashares.com.au/wp-co...tralia-Benchmark-Index-Series-Methodology.pdf

    The ETF holds the 200 securities of the index per the information on the Betashares website.

    I am no expert, some risks would be associated with the relatively smaller size of the ETF vs the main competition. Not sure how the fund is structured exactly, I remember seeing some lumpy distributions from VAS at one point (they have now resolved the issue).

    Betashares provides info here
    BetaShares Australia 200 ETF | BetaShares Lowest Cost Australia 200 ETF | A200
     
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  7. twisted strategies

    twisted strategies Well-Known Member

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    does it ( actually hold all those securities ) ???

    i hold HVST from the same provider and at one stage it had a core of VAS ( the index fund NOT retail ETF ) plus extra dividend opportunities as they arrived ( some months heavy in REITs etc etc )

    that was called 'exposure' as well

    VAS was good with those 'lumpy divs they were caused by special divs and take-over deals but IHD did very well with the TOL take-over ...
    ETFs are supposed to give 100% returns after costs and fees .. while some LICs choose to buffer/level ( which can be useful as well )

    and that is why i have a mix of ETFs and LICs ( and REITs )
     
  8. Hodor

    Hodor Well-Known Member

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  9. twisted strategies

    twisted strategies Well-Known Member

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    forgive me for my skepticism , but have NEARLY been bitten before ( on a different product ) and being a new product i usually put HOURS ( up to a week , reading and thinking ) in before decision time .. if and when to consider adding

    given i have held VAS since 2011 , i do not have a compelling need for XJO coverage at these market levels and might still prefer ( the so far unpurchased MVW , which plays the index very differently but at higher fees/charges )

    cheers