If you own the popular BetaShares Australia 200 ETF (ASX: A200), your shares investments are about to change.
S&P Dow Jones Indices has announced its September quarter rebalance, which will directly impact the A200 ETF's composition.
Let me explain.
Every quarter, the S&P Dow Jones Indices team rebalances Australia's leading indices, including the S&P/ASX 200 Index (ASX: XJO).
They do this to ensure our indices accurately reflect the performance of Australia's biggest companies by market capitalisation.
Indices play a crucial role in that they allow us to measure the market's performance over any given period of time.
The A200 ETF seeks to track the performance of the ASX 200 before fees.
This means every time that the S&P Dow Jones changes the composition of the ASX 200, BetaShares must adjust its A200 ETF portfolio.
The next rebalance will become effective on 22 September.
Before then, BetaShares will buy the shares being added to the ASX 200 and sell those being removed, to update the A200 ETF portfolio.
Image source: Getty Images
A200 is the most popular ETF tracking the benchmark index
The latest data from ASX shows the A200 is the most popular ASX 200-tracking ETF with a market capitalisation of $8.37 billion.
Other exchange-traded funds (ETFs) that also track the ASX 200 have a lower market cap.
They include the SPDR S&P/ASX 200 ETF (ASX: STW) at $6.27 billion and the iShares Core S&P/ASX 200 ETF (ASX: IOZ) at $7.65 billion.
Aussie investors love ASX ETFs for their simplicity, diversification, and low ongoing costs.
They allow investors to buy a basket of shares in one trade for a single brokerage fee.
ETFS also have low ongoing management fees, with the A200 only costing investors 0.04% per year.
Betashares data shows Australians invested a record $5.28 billion into ASX ETFs in July this year.
The ASX ETF industry now has a record $289.2 billion in funds under management.
How will A200 ETF change on 22 September?
Below are the ASX shares that will enter the ASX 200 or be dropped from the index on 22 September.
BetaShares will adjust the A200 ETF to mirror these changes.
9 ASX shares entering the ASX 200
| ASX share |
| DroneShield Ltd (ASX: DRO) |
| IperionX Ltd (ASX: IPX) |
| Perenti Ltd (ASX: PRN) |
| Superloop Ltd (ASX: SLC) |
| Tuas Ltd (ASX: TUA) |
| Dalrymple Bay Infrastructure Ltd (ASX: DBI) |
| Greatland Resources Ltd (ASX: GGP) |
| Ebos Group Ltd (ASX: EBO) |
| GQG Partners Ltd (ASX: GQG) |
