Is IMPQ a good ETF?
IMPQ is the Perennial Better Future Active ETF. We classify it under AU, Small-Cap, ESG, and Active. With about $32 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
The management fee of 0.98% is high, which is common for active, geared or thematic strategies and only worth paying if the approach justifies it. For comparison, similar ETFs average around 0.49%. If cost is your priority, VSO (0.3%), SMLL (0.39%), and MVE (0.45%) cover similar ground for less.
Portfolio turnover is somewhat elevated at about 45% a year — close to half the holdings turn over annually, which starts to realise capital gains more often and chips away at after-tax returns.
Things to watch
- A 0.98% management fee is high and compounds against you over time.
- Pricier than similar ETFs, which average around 0.49%.
- Cheaper alternatives exist: VSO, SMLL, and MVE.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What IMPQ'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.
Smaller companies, which historically carry a long-run 'size premium' alongside greater volatility and lower liquidity.
- Market regime
- Tends to lead early in economic recoveries and falls hardest in recessions and credit crunches, as smaller firms are more economically sensitive.
- In a portfolio
- A long-horizon satellite tilt for extra growth — expect a bumpier ride than large-cap and broad-market funds.
Screens out, or tilts away from, companies on environmental, social and governance criteria — letting you align your money with your values.
- Market regime
- Performance broadly tracks the wider market, but can drift when excluded sectors (e.g. energy, mining, weapons, tobacco) have a strong or weak run. Fees are usually a touch higher.
- In a portfolio
- Suitable as a core or near-core holding for values-driven investors; just understand which sectors are excluded and why returns may diverge from the broad index.
Actively managed: a portfolio manager hand-picks holdings trying to beat the index, rather than simply tracking it. You pay more in fees for the chance of outperformance.
- Market regime
- Can add value in volatile, falling or inefficient markets where stock-picking and downside protection matter. In long, broad bull markets most active funds struggle to keep up with the cheap index after fees.
- In a portfolio
- Only worth holding if you have genuine conviction in the strategy — decades of evidence show the majority of active funds underperform their benchmark over 10+ years once fees are counted.
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.