With ASX exchange-traded funds (ETFs) continuing to rise in popularity on the ASX, it is inevitable that the ASX boards will continue to welcome new ETFs to its ranks.
That trend is very visible as we start a new trading week with the launch of a new fund from popular provider BetaShares.
Today marks the first day in the ASX life of the Betashares Global Shares ex US ETF (ASX: EXUS).
At present, EXUS units are asking a price of $35.19 each after trading in a range between $35.14 and $35.47 thus far.
So what is this new Betashares fund, and what does it represent an investment in?
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Meet the ASX's newest ETF
Well, EXUS is an index fund that tracks the 'Solactive GBS Developed Markets ex Australia and United States Large & Mid Cap AUD Index'. It is aimed at investors who wish to add diversification in their portfolios with exposure to stocks that lie outside both the ASX and the United States. Those are the two most popular markets for ASX investors to buy stocks within right now (and historically).
EXUS comprises more than 900 stocks hailing from 22 advanced economies around the world. The most prominent of these are Japan (at 23.3% of the EXUS portfolio), Britain (13.1%), and Canada (12.3%). But this ASX ETF also includes France, Germany, Sweden, and Spain, amongst others.
In terms of individual stock holdings, EXUS offers significant exposure to the likes of ASML Holdings, SAP, AstraZeneca, Nestle, HSBC Holdings, Shell, and Toyota.
Breaking down the EXUS portfolio
Breaking down the different sectors that the Betashares Global Shares ex US ETF will expose investors to, financials come out on top, commanding 24.4% of the EXUS portfolio. Other significant sectors include industrials (19.2%), tech stocks (9.9%), and consumer discretionary shares (9.6%).
Let's talk performance, though.
This ASX ETF is obviously new, and thus does not have much in the way of performance data to show just yet. However, the index that it tracks has returned a healhty 24.53% over the 12 months to 31 October. Over the preceding three years, it has averaged 19.19% per annum. That declines to 14.28% per annum over the previous five years, and to 8.59% per annum over the past ten. Remember though, past performance is never an indicator of future returns.
The Betashares Global Shares ex US ETF will charge an ASX management fee of 0.14% per annum. That is relatively cheap, although not cutting edge, by ASX standards. Let's see how this fund goes on its first week of ASX life.
