BetaShares on ‘Recommended Index’ by Lonsec

BetaShares has been awarded two further ‘Recommended Index’ ratings from Lonsec with Australia’s first fundamental index ETF being rated for the first time while the BetaShares Commodities Basket ETF was upgraded from ‘Investment Grade Index’ to ‘Recommended Index’.

The BetaShares FTSE RAFI Australia 200 ETF trading under the ASX Code “QOZ” is designed to provide investors with an exposure to the top 200 companies listed on the ASX, weighted in a way that is reflective of their economic footprint rather than their market capitalisation. Such an approach is known as Fundamental Indexing®.

The BetaShares Commodities Basket ETF trading under the ASX Code “QCB” aims to provide exposure to the performance of a diversified basket of commodities. Lonsec upgraded the rating of this Fund in part due to its consistent low tracking error.

Alex Vynokur, Managing Director of BetaShares said the Lonsec ratings highlight the robust nature of BetaShares’ systems and infrastructure in offering exchange traded products as well as the benefits of the Fundamental Indexing® approach.

“We are excited to have additional funds awarded with a ‘Recommended Index’ rating, an extremely important first step when speaking with dealer groups and advisers who are considering suggesting ETFs to their clients,” said Mr Vynokur.

“As the Australian ETF industry continues its stellar growth with $1.2 billion increase in FUM over the last six months to 30 June 2013, investors and advisers will heavily rely on independent information provided by research companies. As an issuer of ETFs, we believe the increased coverage by research companies is a positive step for an expanding industry.”

“The ‘Recommended Index’ ratings are a good independent affirmation of the potential value of the ETF for client portfolios. ETFs provide investors with exposure to transparent, low cost and simple-to-implement strategies that can be used as core or tactical allocations,” Mr Vynokur concluded.

The six BetaShares ETFs holding ‘Recommended Index’ ratings from Lonsec are as follows:

–       BetaShares FTSE RAFI Australia 200 ETF (QOZ)

–       BetaShares US Dollar ETF (USD)

–       BetaShares Gold Bullion ETF (QAU)

–       BetaShares S&P/ASX 200 Financials Sector ETF (QFN)

–       BetaShares S&P/ ASX 200 Resources Sector ETF (QRE)

–       BetaShares Commodities Basket ETF – Currency Hedged (Synthetic) (QCB)

A ‘Recommended Index’ rating indicates Lonsec has a strong conviction the fund can achieve its objective and that the product has a number of competitive advantages.

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