The pros and cons of buying the BetaShares Australia 200 ETF (A200)

MotleyFool04-22

The BetaShares Australia 200 ETF (ASX: A200) is a popular exchange-traded fund (ETF) that gives investors exposure to the ASX share market. It tracks the Solactive Australia 200 Index, which includes ...

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It tracks the Solactive Australia 200 Index, which includes ...</p>\n\n<a href=\"https://www.fool.com.au/2024/04/22/the-pros-and-cons-of-buying-the-betashares-australia-200-etf-a200/\">Source Link</a>\n\n</div>\n","source":"motleyfoolau_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The pros and cons of buying the BetaShares Australia 200 ETF (A200)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe pros and cons of buying the BetaShares Australia 200 ETF (A200)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-22 06:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2024/04/22/the-pros-and-cons-of-buying-the-betashares-australia-200-etf-a200/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The BetaShares Australia 200 ETF (ASX: A200) is a popular exchange-traded fund (ETF) that gives investors exposure to the ASX share market. It tracks the Solactive Australia 200 Index, which includes ...</p>\n\n<a href=\"https://www.fool.com.au/2024/04/22/the-pros-and-cons-of-buying-the-betashares-australia-200-etf-a200/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7153","symbol_name":"综合零售","start_time":0,"source_url":"https://www.fool.com.au/2024/04/22/the-pros-and-cons-of-buying-the-betashares-australia-200-etf-a200/","article_id":"2429954680","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2429954680","pubTimestamp":1713737639,"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"The BetaShares Australia 200 ETF (ASX: A200) is a popular exchange-traded fund (ETF) that gives investors exposure to the ASX share market. It tracks the Solactive Australia 200 Index, which includes ","collect":0,"end_time":0,"defaultTopTitle":"fool.com.au","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7153":"综合零售","BK7507":"资源股","ETHI.AU":"BETASHARES GLOBAL SUSTAINABI","BK7508":"医药生物股","WBC.AU":"WESTPAC BANKING CORPORATION","BK7041":"综合货品商店","NAB.AU":"NATIONAL AUSTRALIA BANK LTD","FDN":"First Trust Dow Jones Internet I","BK4550":"红杉资本持仓","CSL.AU":"CSL LIMITED","BK7511":"ESG概念","NDQ.AU":"BETASHARES NASDAQ 100 ETF","BK4585":"ETF&股票定投概念","BK7067":"生物科技","XAO.AU":"标普/澳交所 普通股指数","QLTY.AU":"BETASHARES GB QUAL LEADERS","A200.AU":"BetaShares Australia 200","XJO.AU":"标普/澳交所 200指数","BK4588":"碎股","ETF.AU":"UBS IQ Research Preferred AU Share","XKO.AU":"标普/澳交所 300指数","BHP.AU":"BHP GROUP LTD","ANZ.AU":"ANZ GROUP HOLDINGS LTD","BK7095":"多种金属与采矿","BK7501":"新冠治疗股","WES.AU":"WESFARMERS LTD","CBA.AU":"COMMONWEALTH BANK OF AUSTRAL","BK7135":"综合性银行"},"translate_title":"购买BetaShares Australia 200 ETF(A200)的利弊","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ANZ.AU":1,"XKO.AU":1,"XJO.AU":1,"XAO.AU":1,"WES.AU":1,"WBC.AU":1,"QLTY.AU":1,"NDQ.AU":1,"NAB.AU":1,"FDN":1,"ETHI.AU":1,"ETF.AU":1,"CSL.AU":1,"CBA.AU":1,"BHP.AU":1,"A200.AU":1},"content_text":"The BetaShares Australia 200 ETF (ASX: A200) is a popular exchange-traded fund (ETF) that gives investors exposure to the ASX share market. It tracks the Solactive Australia 200 Index, which includes 200 of the biggest businesses on the ASX. The A200 ETF has net assets of more than $4.5 billion, making it one of the larger ETFs on the ASX. I'm going to discuss, from my perspective, the pros and cons of the A200 ETF. Positives of the A200 ETF The annual management fee is 0.04%, the lowest-cost Australian shares ETF available on the ASX. Low costs are great because they leave more of the fund's value in the hands of investors rather than it being lost to fees. Part-ownership of 200 businesses can give investors good diversification, with the biggest holdings within the portfolio being:  BHP Group Ltd (ASX: BHP) – 10.2% of the portfolio Commonwealth Bank of Australia (ASX: CBA) – 8.4% CSL Ltd (ASX: CSL) – 5.9% National Australia Bank Ltd (ASX: NAB) – 4.6% Westpac Banking Corp (ASX: WBC) – 4% ANZ Group Holdings Ltd (ASX: ANZ) – 3.8% Wesfarmers Ltd (ASX: WES) – 3.3%  Another potentially positive aspect of the A200 ETF is its relatively high dividend yield of 3.5%, or 4.8% grossed-up for the franking credits. A large number of the holdings have a high dividend yield themselves, which helps the ASX ETF itself provide good passive income because an ETF simply passes on the dividends it receives.   The negatives  A200 ETF does own 200 businesses, but the weightings of the allocations mean it's less diversified than it first appears. ASX financial and mining shares make up just over 52% of the portfolio. It makes sense, as miners and banks account for a very sizeable part of the Australian economy and tax base.  The top 10 businesses account for 48% of the portfolio right now, which again shows how loaded the A200 ETF portfolio is with just a few companies from a couple of sectors. This reality isn't a positive for me. Miners and banks usually have generous dividends, but they're not known for producing long-term sustained capital growth. As at 28 March 2024, the A200 ETF had delivered an average return per annum of 8.9% since inception in May 2018. That's not bad at all; it's okay. Past performance is not a guarantee of future performance, but international shares have demonstrated a stronger ability to reinvest and grow profit, enabling better returns than ASX blue-chip shares. I'll use some other BetaShares ETFs as examples of that. The Betashares Global Quality Leaders ETF (ASX: QLTY) has delivered an average annual return of 15.6% over the past five years. The Betashares Nasdaq 100 ETF (ASX: NDQ) has delivered an average annual return of 22.2% over the last five years. The BetaShares Global Sustainability Leaders ETF (ASX: ETHI) has delivered an average annual return of 15.6% over the past five years.  I'm not expecting the next five years to be as good as the last five years for these ETFs, but it shows how growing businesses can deliver good returns.  The A200 ETF is a solid pick for the positives I mentioned above, but I'd want to own other ETFs as well to ensure I'm getting exposure to good businesses worldwide.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2429954680"}