QRE - BetaShares S&P/ASX 200 Resources Sector ETF

[So_Cynical]

QRE is a new ETF that aims to track the price and income performance of the S&P/ASX 200 Resources Index....as you would expect its very heavily weighted to BHP (41.3%) in fact the top 5 holdings (BHP, RIO, NCM, WPL, ORG) make up 70% of the portfolio, with the other 55 odd stocks held by the Fund making up the other 30%.

QRE has only been trading for about 5 weeks and has a market cap of around 35 mill so i wont bother with a chart...i would imagine it would closely follow the ASX50 and would be a similar investment to a ASX50 or ASX100 tracking ETF....will be interesting to see over time if there is much of a difference.

Still i reckon this stock would be great for those wanting easy access to any upside to the resources sector, as its a pure Aussie resources play and a great vehicle for a punt on the China, India developing world boom etc.

http://www.betashares.com.au/produc...resources-sector-etf-synthetic/#each-keyFacts
~

 

[thembi]

Re: QRE – BetaShares S&P/ASX 200 Resources Sector ETF

I was also interested in the correlation between QRE and the S&P/ASX 200 (or ASX 50) - so got a friend of mine to run the numbers on Bloomberg (see the attachment). Very different results so I think perhaps QRE could be a good way to get overweight resources

 

[So_Cynical]

Re: QRE – BetaShares S&P/ASX 200 Resources Sector ETF

I was also interested in the correlation between QRE and the S&P/ASX 200 (or ASX 50) - so got a friend of mine to run the numbers on Bloomberg (see the attachment). Very different results so I think perhaps QRE could be a good way to get overweight resources

Nice chart...showing a clear out perform pre GFC (metal price boom time) and post GFC on the back of rising metal prices and the financial sector, REIT's and industrials under performing.

 

[Panaman]

Added to the SMSF this week, Resources are clearly out of favour (maybe the best time to buy?) but for a long term hold this low cost ETF gives a bit of everything in the sector which at some stage will come back to life, in the mean time a decent yield and with everything priced in $US a falling $A has got to be offsetting the price falls in the metals and oil.

 

[thembi]

Added to the SMSF this week, Resources are clearly out of favour (maybe the best time to buy?) but for a long term hold this low cost ETF gives a bit of everything in the sector which at some stage will come back to life, in the mean time a decent yield and with everything priced in $US a falling $A has got to be offsetting the price falls in the metals and oil.

Sounds fair - best of luck

 

[peter2]

Had a quick look at the holdings in QRE,
too much BHP (41%),
not enough RIO (10%),
not enough gold (NEM - 1.8%, NST - 3.2%),
not enough copper (0.6%)

 

[divs4ever]

Had a quick look at the holdings in QRE,
too much BHP (41%),
not enough RIO (10%),
not enough gold (NEM - 1.8%, NST - 3.2%),
not enough copper (0.6%)

i like to 'cherry-pick in this sector

so went with the extra paper-work

 

[Sean K]

Had a quick look at the holdings in QRE,
too much BHP (41%),
not enough RIO (10%),
not enough gold (NEM - 1.8%, NST - 3.2%),
not enough copper (0.6%)

Yikes! How can the investment rules of an ETF mean 40% in one company? They're supposed to mitigate some risk. Maybe BHP is just too big compared to the rest of the sector.

 

[Dona Ferentes]

Yikes! How can the investment rules of an ETF mean 40% in one company? They're supposed to mitigate some risk. Maybe BHP is just too big compared to the rest of the sector.

it was like that in 2011, according to #1 post above

 

[divs4ever]

CODE	COMPANY	ASSET
BHP	BHP Group Ltd	41.20%
WDS	Woodside Energy Group Ltd	10.41%
RIO	Rio Tinto Ltd	8.48%
FMG	Fortescue Ltd	7.59%
STO	Santos Ltd	4.02%

Top 10 Holdings

CODE	COMPANY	ASSET
NEM	Newmont Corp Chess Depository Interest	3.00%
NST	Northern Star Resources Ltd	2.73%
S32	South32 Ltd	2.46%
PLS	Pilbara Minerals Ltd	2.08%
MIN	Mineral Resources Ltd	2.06%

as currently displayed on Commsec

since it includes S32 it is not that far out of date