Betashares ETFs have become some of the most popular building blocks for Australian investors, but popularity does not automatically make an ETF a buy.
As September begins, three of the provider's biggest funds offer very different propositions — from cheap Australian exposure to high-growth US technology and an all-in-one global portfolio.
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A200: The boring ETF that keeps delivering
The BetaShares Australia 200 ETF (ASX: A200) may not be the most exciting ETF on the market, but that is precisely its appeal. The fund returned 1% over the past 12 months, 5% year-to-date and 19% over five years. It gives investors broad exposure to Australia's biggest companies like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).
A200's standout strength is its rock-bottom 0.04% management fee, while its Funds Under Management (FUM) has climbed to around $11 billion. Its largest holdings include BHP and Commonwealth Bank, highlighting both the strength and weakness of the strategy.
For investors wanting a low-cost Australian core holding, A200 is hard to ignore. The problem is concentration. Australian equities are dominated by financials and resources, meaning investors are hardly getting a perfectly balanced slice of the economy. There is also no international exposure.
Still, after a relatively modest 12-month return, this Betashares ETF arguably looks more like a dependable long-term compounder than a momentum trade.
NDQ: The growth bet that has already run hard
If A200 is the steady option, BetaShares Nasdaq 100 ETF (ASX: NDQ) is the adrenaline shot.
NDQ has gained 6% YTD, 11% over one year and an impressive 75% over five years. Its portfolio is packed with global technology and growth giants. Nvidia Corp (NASDAQ: NVDA) and Apple Inc (NASDAQ: AAPL) are among its biggest holdings.
That exposure has been a major strength as artificial intelligence and technology spending have surged. But it is also the fund's biggest vulnerability. Investors are paying a 0.48% management fee for a portfolio heavily tilted towards US mega-cap growth stocks.
After such a powerful five-year run, the provocative question for September is whether investors are buying tomorrow's growth or yesterday's winners.
DHHF: The one ETF to rule them all?
The BetaShares Diversified All Growth ETF (ASX: DHHF) takes a completely different approach. It returned 4.5% YTD, 6% over one year and 38% over five years. This Betashares ETF offers exposure to thousands of companies across Australian, developed and emerging markets.
Its biggest underlying exposures include A200 and BGBL, giving investors a combination of Australian and global equities in one package.
The attraction is simplicity. With around $1.6 billion in FUM and a 0.19% management fee, DHHF gives investors a diversified 100%-growth portfolio without having to assemble one themselves.
Its weakness is equally straightforward: investors surrender some control over exactly where their money goes. And because DHHF is entirely growth assets, it can still take a serious hit when global sharemarkets turn south.
For September, DHHF may be the least exciting choice, but for investors seeking simplicity and diversification, that could be exactly the point.
