Is QOZ a good ETF?
QOZ is the BetaShares FTSE RAFI Australia 200 ETF from BetaShares. It tracks the FTSE RAFI Australia 200 Index. We classify it under AU, Factor, and Value. With about $1.34 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2013-07-09 (about 13 years ago).
On a total-return basis, QOZ has delivered 10.62% a year over 10 years (ranked 38th of 108 ETFs we track), 11.36% a year over 5 years (ranked 38th of 188 ETFs we track), 14.27% a year over 3 years (ranked 70th of 226 ETFs we track), and 18.63% a year over 1 year (ranked 58th of 308 ETFs we track). Its strongest showing is over 1 year, where it sits in the top 19% of all ETFs we track.
The management fee of 0.4% 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 3.8% 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 78% franking softens the blow for Australian residents.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 13.73%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.65 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is low at about 18% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Strengths
- Top-19% returns over 1 year (58th of 308 ETFs we track).
- Low-cost: a 0.4% management fee keeps more of the return in your pocket.
- Pays a useful 3.8% 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 78% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What QOZ'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.
Stocks that look cheap relative to their fundamentals (earnings, book value, cash flow). One of the oldest and best-documented return premiums.
- Market regime
- Rewarded over the very long run and especially in rising-rate, reflation and early-recovery regimes — but endured a long, painful stretch of lagging growth through the 2010s.
- In a portfolio
- A long-term tilt that requires patience and a tolerance for extended underperformance versus the growth side of the market.
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.