Key Highlights

  • The fund is about $371.45 million in size and holds 59 companies.
  • Financial services, industrials and basic materials each make up about a fifth of the portfolio.
  • The management fee is 0.39%.
  • The top ten holdings represent 41.97% of the fund, with Amp and Ansell the largest positions.

Betashares Australian Small Companies Select ETF (ASX:SMLL) tracks the Nasdaq Australia Small Cap Select Index, giving investors exposure to smaller Australian listed companies. The units were listed at $4.49, the fund is about $371.45 million in size, and the management fee is 0.39%. Smaller companies can offer different growth prospects from the largest listed companies, but they also come with higher Volatility and less trading depth.

Ticker

ASX:SMLL

Listed price

$4.49

Fund size

$371.45 million

Management fee

0.39%

Benchmark

Nasdaq Australia Small Cap Select TR AUD

Holdings

59 companies

Sector and size mix

Financial services account for 20.80% of the fund, industrials for 20.28% and basic materials for 20.09%. Consumer cyclical makes up 10.11%, healthcare 9.31% and consumer defensive 9.19%. Shares make up the entire portfolio.

By size, 56.44% of holdings have market values above $1 billion, 40.23% fall between $500 million and $1 billion, and 3.33% are below $500 million. The largest holdings are AMP at 6.42%, Ansell at 6.32%, Cleanaway Waste Management at 5.00% and Bank of Queensland at 4.23%. The top ten make up 41.97% of the portfolio.

Income and costs

The management fee is 0.39%, which is higher than broad large-cap index funds. The listing shows no annual yield, which is common for smaller companies that retain profits to fund growth. Investors should not expect the fund to generate meaningful income.

Risks to weigh

Smaller companies tend to be more volatile than large caps. Their share prices can move sharply on Earnings news or on changes in liquidity, and it can be harder to sell holdings quickly in a downturn. The fund's sector mix is spread out, but its top ten holdings still account for a large share of the portfolio. Investors should weigh the potential for growth against those higher swings.

Final Word

The Betashares Australian Small Companies Select ETF offers broad exposure to smaller Australian listed companies across several sectors. It pays little income, and its unit price is likely to move more than the large-cap funds, which is the main Factor investors should weigh.