Exposure to Australian small-cap companies: The ETF provides investors with exposure to a diversified portfolio of Australian small-cap companies. Small-cap companies are generally considered to have higher growth potential than large-cap companies, but they also come with higher risk.
Low cost: The ETF has a management fee of just 0.06% per annum. This is relatively low compared to other ETFs that invest in Australian small-cap companies.
Liquidity: The ETF is traded on the Australian Securities Exchange (ASX), which means that investors can buy and sell units in the ETF at any time during the trading day.
Tax-effectiveness: The ETF is structured as a unit trust, which means that it is tax-effective for Australian investors. Unit trusts are taxed at a flat rate of 30% on their income, and shareholders are entitled to franking credits, which can reduce their tax liability.
Diversification: The ETF provides investors with exposure to a broad range of Australian small-cap companies across a range of sectors. This diversification helps to reduce risk and maximise income potential.
Transparency: The ETF is passively managed, which means that it tracks a published index. This makes the ETF transparent and easy to understand.