Not enough quality on the ASX? Betashares can name 40 companies

LiveWire10-10

Think quick. True or false. There’s not enough quality on the ASX to warrant tracking this factor. The answer, if you ask Betashares’ Tom Wickenden, is unequivocally false. He argues there are at ...

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He argues there are at ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/not-enough-quality-on-the-asx-betashares-can-name-40-companies\">Source Link</a>\n\n</div>\n","source":"livewire_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>Not enough quality on the ASX? 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Betashares can name 40 companies\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-10 04:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/not-enough-quality-on-the-asx-betashares-can-name-40-companies><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Think quick. True or false. There’s not enough quality on the ASX to warrant tracking this factor.\nThe answer, if you ask Betashares’ Tom Wickenden, is unequivocally false. He argues there are at ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/not-enough-quality-on-the-asx-betashares-can-name-40-companies\">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":"BK7094","symbol_name":"医疗保健技术","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/not-enough-quality-on-the-asx-betashares-can-name-40-companies","article_id":"2474063862","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/not-enough-quality-on-the-asx-betashares-can-name-40-companies","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2474063862","pubTimestamp":1728505815,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Think quick. True or false. There’s not enough quality on the ASX to warrant tracking this factor.The answer, if you ask Betashares’ Tom Wickenden, is unequivocally false. He argues there are at least 40 names, starting with quality picks like Wisetech , Netwealth and Pro Medicus .Tracking quality names might sound like a challenge for those who use passive investments. After all, the traditional form of passive investing involves tracking a broad-based index weighted by market cap. However, the key is to look for more modern iterations, like smart-beta investing, which can offer a more tailored approach such as investing for quality.Sara Allen: Hello, I'm Sara Allen. You're watching Livewire’s RapidFire and I'm here today with Betashares’ Tom Wickenden. 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True or false. There’s not enough quality on the ASX to warrant tracking this factor.\nThe answer, if you ask Betashares’ Tom Wickenden, is unequivocally false. He argues there are at least 40 names, starting with quality picks like Wisetech (ASX: WTC), Netwealth (ASX: NWL) and Pro Medicus (ASX: PME). \nTracking quality names might sound like a challenge for those who use passive investments. After all, the traditional form of passive investing involves tracking a broad-based index weighted by market cap. However, the key is to look for more modern iterations, like smart-beta investing, which can offer a more tailored approach such as investing for quality.\n“Smart beta investing is an index that weights or selects companies by anything other than size or market cap,” says Wickenden.\nIn the current environment of uncertainty, it’s not surprising that investors would be looking for means of doing things a bit differently. Factors like quality appeal given strong performance in recent years (and the wisdom of holding high-quality across market cycles) while market concentration can encourage investors to consider smart-beta applications like equal-weighted indices.\nIn the following Rapid Fire, Wickenden explores smart-beta investing, quality on the ASX, and managing the concentration risk in the S&P500.\n\n\n\nNote: This interview was filmed on Wednesday 25 September 2024.\nEdited transcript:\nSara Allen: Hello, I'm Sara Allen. You're watching Livewire’s RapidFire and I'm here today with Betashares’ Tom Wickenden. Tom, to begin with, can you share in a few sentences what is smart-beta investing?\nTom Wickenden: So smart-beta investing is an index that weights or selects companies by anything other than size or market cap.\nSara Allen: What's a compelling piece of research that supports the use of smart beta?\nTom Wickenden: I'll give a shout out to Research Affiliates. They are some guys based in the US, they've got lots of good research around smart-beta.\nSara Allen: Which factors are popular right now and why?\nTom Wickenden: Quality. Quality is popular because, in the past five to 10 years, it's performed so well.\nSara Allen: True or false, there aren't enough quality companies in the ASX to warrant tracking this factor.\nTom Wickenden: It's false. Just look at Betashares AQLT. \nSara Allen: AQLT tracks 40 high-quality companies on the ASX, which have the biggest overweight compared to the ASX 200.\nTom Wickenden: At the moment. You'd be looking at Wisetech, Netwealth and Pro Medicus.\nSara Allen: Why would investors choose an equal-weight strategy?\nTom Wickenden: To reduce concentration, improve diversification, and also potential for short and long-term outperformance.\nSara Allen: Where is there a compelling case to use an equal weight strategy?\nTom Wickenden: Right now in the US. In the US, the top five names are 25% of the S&P 500. So equal weight makes a bit of sense.\nSara Allen: Can you bring it to life and share an example of how an equal weight strategy differs from the broader index?\nTom Wickenden: Yeah, of course. Right now in the S&P 500, the top five names are 25%. The bottom 400 names are 25% weight. In the S&P 500 equal weight index, the top five names are 1%, and the bottom 400 names, 80%. Huge difference.\n\n\n\nETF\nBetashares Australian Quality ETF (AQLT)\nAustralian Shares\n\n\nView\n\n\n\n\n\n \n\n\nNever miss an update\n\n    Enjoy this wire? 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