Key Highlights

  • The fund is about $1.34 billion in size and holds 173 companies.
  • Financial services make up 31.56% of the portfolio, with basic materials at 28.86%.
  • The management fee is 0.03%, and the listed annual Yield is 2.67%.
  • BHP and Commonwealth Bank are the two largest holdings, at 11.73% and 8.83% respectively.

Macquarie Core Australian Equity Active ETF (ASX:MQAE) provides exposure to a diversified portfolio of Australian equities listed on the ASX, and may also hold shares listed offshore that are also quoted on the ASX. The units were listed at $12.37, the fund is about $1.34 billion in size, and the management fee is 0.03%. Unlike the passive Index Funds in this series, the fund is actively managed, so its holdings reflect the manager's selections rather than a fixed index.

Ticker

ASX:MQAE

Listed price

$12.37

Fund size

$1.34 billion

Management fee

0.03%

Listed annual yield

2.67%

Benchmark

S&P/ASX 300 TR

Holdings

173 companies

Sector and stock mix

Financial services make up 31.56% of the fund, and basic materials 28.86%. Industrials account for 7.81%, consumer cyclical for 6.80% and healthcare for 4.97%. Shares make up 98.61% of the portfolio, and Australia accounts for 96.42%.

The largest holdings are BHP at 11.73%, Commonwealth Bank at 8.83%, Westpac at 4.12%, National Australia Bank at 4.07%, ANZ at 4.04% and Macquarie Group at 3.79%. The top ten make up 47.25% of the fund.

Income and costs

The management fee is 0.03%, which is one of the lowest fees for an active Australian equity fund. The listed annual yield is 2.67%, reflecting the dividends paid by the underlying companies, which can change with profits and payout decisions.

Because the fund is actively managed, investors are paying for the manager's stock selection and portfolio decisions. The low fee suggests the costs of active management are kept contained.

Risks to weigh

Active management carries the risk that the manager's stock choices underperform the market. The fund's heavy weighting to banks and resource companies means it remains exposed to those sectors. Equity prices can fall sharply in market sell-offs, and dividends are not guaranteed. The fund's active approach also means its holdings can change without a fixed index rule to guide them.

Final Word

The Macquarie Core Australian Equity Active ETF offers an actively managed route into Australian shares at a very low fee. Its results depend on the manager's stock decisions, and its heavy weighting to financials and materials means the portfolio will remain closely tied to those sectors.