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- First Australian ETF based on fundamental weighting rather than market capitalisation
- Builds on FTSE’s established track record in providing alternatively weighted index solutions to Australian investors
FTSE Group (“FTSE”), the global index provider, announces that BetaShares, one of Australia’s leading exchange traded product issuers, has chosen the FTSE RAFI Australia 200 Index as the basis of the first Australian equity Fundamental Index ETF, which launches on the Australian Securities Exchange (“ASX”) today.
The BetaShares FTSE RAFI Australia 200 ETF, which will trade under the ASX Code “QOZ”, offers Australian investors access to the top 200 companies listed on the ASX as measured by fundamental factors rather than market capitalisation.
John Caulfield, Director Business Development Australia, FTSE said, “FTSE is a pioneer in alternatively weighted index strategies with an established track record of providing index solutions to investors in Australia. We are proud to work with BetaShares to support a unique investment opportunity leveraging the globally recognised FTSE RAFI Fundamental Index methodology.”
Commenting on the partnership with FTSE, Alex Vynokur, Managing Director of BetaShares, said “The relationship with FTSE further solidifies BetaShares’ position as one of the leading exchange traded product providers in Australia. This is the first Australian ETF to use a fundamental index methodology. It provides investors with exposure to a transparent, low cost and simple-to-implement strategy that can be used as a core portfolio allocation, and is based on an index methodology with a compelling track record when compared with traditional, cap weighted benchmarks.”
The FTSE RAFI Australia 200 Index is part of the FTSE RAFI Index Series developed with Research Affiliates LLC, which selects and weights constituents according to four fundamental factors – sales, cash flow, book value, and dividends. By breaking the link with price, the Fundamental Index approach avoids the bias inherent in market capitalisation weighted indices.
