QUS - Betashares S&P 500 Equal Weight ETF

[Dona Ferentes]

Key facts​

Profile​

Units outstanding* (#)	14,200,276
Management fee and cost** (p.a.)	0.29%
Distribution frequency	Semi-annual

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QUS aims to track the performance of the S&P 500 Equal Weight Index (before fees and expenses). The Index provides exposure to 500 leading listed US companies, with each holding in the index weighted equally.
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Portfolio diversification and reduced concentration​

Cost-effective exposure to 500 leading US companies, in a single ASX trade. Equal weighting approach reduces the risk of the portfolio being heavily exposed to a small number of ‘mega cap’ companies

 

[qldfrog]

Recently read an article on how equal weight etfs have been underperforming std index for a long long time, not only our fang focussed recent run.
Which was not what i expected
DYOR...

 

[BossMan.]

 

[Dona Ferentes]

View attachment 190355

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in USD I presume. QUS would be different?

 

[Dona Ferentes]

and doing OK .. with more interest in it in 2024

 

[Bellcose]

and doing OK .. with more interest in it in 2024

View attachment 190358

How does it compare with SPY (SPDR S&P 500)?

 

[Bellcose]

Answered my own question.

MER 0.0945% v 0.33%

 

[qldfrog]

View attachment 190355

This is the exact opposite of what i remember reading
i have to definitely find back:
Was it sp500, asx a subset?
Basically the explanation was: all the growth in the recent market was in the few mega stocks and the equal weight was hurt badly...
So very surprised by the above post even if it is not exactly comparing apples to apples

 

[BossMan.]

This is the exact opposite of what i remember reading

@qldfrog I didn't scrutinise the AI heavily. It does appear you are correct;

comment for FY25 challenge;

As mentioned in my Portfolio Blog my attraction to this asset for the FY challenge comes from its diversified nature. I see this year as one of mid-caps and value stocks.

I think as a result of the MAG7 we no longer get a true representation of USA equities from the index. Hence why the equal weight is being selected.

 

[qldfrog]

I agree on your last paragraph, but choosing that index for optimal investment is not my choice in a bull market.have a great weekend and thanks for the extra data

 

[divs4ever]

Recently read an article on how equal weight etfs have been underperforming std index for a long long time, not only our fang focussed recent run.
Which was not what i expected
DYOR...

a key factor in equal weight ETFs is the portfolio rebalance period , from memory the ASX listed MVW rebalances every two moths

( i haven't researched QUS deeply as i would rather not be in the US market )

now equal-weight implies reducing your winners and adding to the losers , ,

now is that a clever strategy in the S&P 500 a currently very lop-sided index

div. return wise i think yes , but not so good capital-gain wise

you are adding under-valued stocks at the expense of the over-valued ones

the standard index is capital gain focused