Why the new BetaShares diversified ETFs?

Posted: 11 December 2019 6:04 pm
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The new range offers the lowest fees of any diversified ETFs on the ASX at 0.26% p.a.

Australian exchange traded fund (ETF) provider BetaShares has launched four new funds that seriously take diversification to the next level.

Instead of tracking indices, the new "Diversified" range of funds are made up of multiple ETFs to create a portfolio across several asset classes, including local and overseas shares, property, bonds and cash.

Most ETFs are passive investment funds that track specific indices, such as the ASX200 index, meaning they usually track one asset class.

While fund managers and robo-advisors like StockSpot and Raiz Invest similarly create funds comprised of multiple ETFs, this is the first time that funds of this kind have been listed on the Australian Securities Exchange (ASX).

Along with a collection of its own BetaShares products, the new ETFs also hold funds from Vanguard and State Street Global Advisors (SPDR).

The new BetaShares ETFs

  • BetaShares Diversified High Growth ETF: ASX: DHHF (90% growth/10% defensive)
  • BetaShares Diversified Growth ETF: ASX: DGGF (70% growth/30% defensive)
  • BetaShares Diversified Balanced ETF: ASX: DBBF (50% growth/50% defensive)
  • BetaShares Diversified Conservative Income ETF: ASX: DZZF (25% growth/75% defensive)

In a press statement, BetaShares CEO Alex Vynokur said: “Since we announced that these funds were on their way, we’ve had a strong response. We’re excited to announce that all four ETFs are now available on the ASX.”

“The ETFs bring a robustly-constructed portfolio within easy reach of investors regardless of age, experience, and financial resources,” said Vynokur.

Mixed Asset exchange traded products

Fund name Code Fees 1-year performance*
AMP Capital Dynamic Markets Fund (Hedge Fund) DMKT 0.50 2.06%
BetaShares Diversified Balanced ETF DBBF 0.26 N/A
BetaShares Diversified Conservative Income ETF DZZF 0.26 N/A
BetaShares Diversified High Growth ETF DHHF 0.26 N/A
BetaShares Diversified Growth ETF DGGF 0.26 N/A
Schroder Real Return Fund (Managed Fund) GROW 0.90 6.07%
Pinnacle aShares Global Dynamic Income Fund (Managed Fund) SAVE 0.65 N/A
Vanguard Diversified Conservative Index ETF VDCO 0.27 10.94%
Vanguard Diversified Balanced Index ETF VDBA 0.27 13.02%
Vanguard Diversified Growth Index ETF VDGR 0.27 14.44%
Vanguard Diversified High Growth Index ETF VDHG 0.27 16.12%

Source: ASX and BetaShares, 11 December 2019. *1-year performance is to 30 November 2019.

After the BetaShares funds began trading last Thursday, the number of mixed-asset ETFs listed on the ASX rose to 11. BetaShares' four diversified funds – which are classified as traditional index funds, rather than managed funds – currently have the lowest fees among the diversified ETFs at 0.26% p.a., followed by Vanguard at 0.27% p.a.

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