Is SMLL a good ETF?
SMLL is the BetaShares Australian Small Companies Select ETF from BetaShares. It tracks the Nasdaq Australia Small Cap Select Index. We classify it under AU, Small-Cap, Factor, and Quality. Listed on the ASX since 2017-04-07 (over 9 years ago).
The management fee of 0.39% is reasonable. For comparison, similar ETFs average around 0.34%. If cost is your priority, EX20 (0.25%), VSO (0.3%), and MVW (0.35%) cover similar ground for less.
Portfolio turnover is moderate at about 35% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Low-cost: a 0.39% management fee keeps more of the return in your pocket.
Things to watch
- Pricier than similar ETFs, which average around 0.34%.
- Cheaper alternatives exist: EX20, VSO, and MVW.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What SMLL'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.
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.