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BetaShares unveils lowest-cost ETF

BetaShares has announced the launch of what it said is the world’s lowest-cost Australian exchange-traded fund (ETF) with a 0.07 per cent a year management fee.

The BetaShares Australia 200 ETF, which will trade on the Australian Securities Exchange (ASX) under the code A200, will give investors exposure to 200 of the largest companies listed on the ASX by market capitalisation in a single trade.

The ETF aims to make investing in Australian equities cheaper and easier.

The management costs are half those of the current lowest-fee Australian shares ETF available on the ASX, whose management costs are 0.14 per cent a year.

BetaShares chief executive Alex Vynokur said the ETF will provide investors with a core, low-cost exposure to Australian shares.

“A200 is a game-changer for the Australian wealth management industry, significantly reducing the cost of investing in a diversified portfolio of Australian shares,” Vynokur said.

He added greater availability of low-cost portfolio building blocks will propel the next phase of growth in the ETF industry.

“We are experiencing significant growth in demand from retail investors, institutional investors and financial advisers for cost-effective investment solutions across a range of asset classes and strategies,” he said.

“A200 will significantly reduce the cost of ownership of a diversified portfolio of Australian shares, making it an attractive solution for both institutional and retail investors.”

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