Is AQLT a good ETF?
AQLT is the BetaShares Australian Quality ETF from BetaShares. It tracks the Solactive Australia Quality Select Index. We classify it under AU, Factor, and Quality. With about $1.38 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2022-04-04 (over 4 years ago).
On a total-return basis, AQLT has delivered 16.24% a year over 3 years (ranked 52nd of 226 ETFs we track) and 6.73% a year over 1 year (ranked 158th of 308 ETFs we track). Its strongest showing is over 3 years, where it sits in the top 23% of all ETFs we track.
The management fee of 0.35% is reasonable. For comparison, similar ETFs average around 0.34%. If cost is your priority, A200 (0.04%), IOZ (0.05%), and VAS (0.07%) cover similar ground for less. It pays a healthy 4.15% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase, though 80% franking softens the blow for Australian residents.
Over the past 3 years its volatility has been moderate (annualised standard deviation around 12.33%), meaning the kind of swings you'd expect from a diversified equity fund. Its 3-year Sharpe ratio of 0.96 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 25% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Top-23% returns over 3 years (52nd of 226 ETFs we track).
- Low-cost: a 0.35% management fee keeps more of the return in your pocket.
- Pays a useful 4.15% income yield.
Things to watch
- Pricier than similar ETFs, which average around 0.34%.
- Cheaper alternatives exist: A200, IOZ, and VAS.
Good to know
- Distributions are 80% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What AQLT's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
Tilts toward academically-backed drivers of return — value, quality, momentum, size or low volatility — aiming to beat plain market-cap weighting over a full cycle.
- Market regime
- Any single factor can underperform the broad market for years before rewarding patient holders. Multi-factor funds smooth this out somewhat.
- In a portfolio
- A long-term tilt that demands discipline: the edge only shows up if you hold through the inevitable lean stretches.
Companies with strong balance sheets, stable earnings and high return on equity. A defensive-leaning factor that tends to compound steadily.
- Market regime
- Holds up comparatively well in downturns and uncertain markets; can lag during sharp 'junk rallies' off market bottoms when the riskiest stocks surge.
- In a portfolio
- A reliable long-term core or tilt for investors who prize resilience and steady compounding.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.