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Quality-focused ETF from BetaShares

BetaShares Quality ETF

BetaShares is preparing to launch its Australian Quality ETF, providing exposure to diversified companies expected to deliver high rates of return.

BetaShares has announced the upcoming launch of a new exchange-traded fund (ETF) that has a targeted portfolio exposure of 40 high-quality Australian companies.

The BetaShares Australian Quality ETF (ASX: AQLT) has been designed to provide investors with access to a cost-effective range of local companies that are expected to have a high return on investment, low leverage and relatively stable earnings.

“AQLT will give investors access to a cost-effective investment that can serve as a core portfolio allocation for Australian equities. The quality score methodology used by the fund aims to produce superior long-term performance compared to benchmark Australian equities indices,” BetaShares chief executive Alex Vynokur said.

According to the ETF provider the fund will be overweight in growth sectors such as technology and consumer discretionary, while being underweight in the mining sector, relative to the ASX 200.

The manager stated the index tracked by the AQLT had produced solid returns and from its inception in June 2011 to February 2022 delivered returns of 9.9 per cent a year compared to 8.6 per cent a year for the ASX 200.

“AQLT can be used as an Australian equities complement to our popular Global Quality Leaders ETF (ASX: QLTY), which offers quality-screened exposure to global companies,” Vynokur said.

“BetaShares is proud to expand the universe of opportunities for Australian investors. AQLT is another example of our continuing commitment to helping Australian investors progress on their wealth-creation goals.”

During March the underlying index of the new ETF included companies such as Macquarie Group, CSL, Westfarmers and the Woolworths Group.

The ETF is subject to regulatory approvals, but is expected to commence trading on the Australian Securities Exchange in early April.

The release of the BetaShares Australian Quality ETF comes after the manager launched its Online Retail and E-Commerce ETF and Australian Composite bond ETF in February.

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