The ETF No One Can Beat

Sorry – this is the dog-friendly version of Marcus Today.

I have seen with some amusement and interest that Global X have issued an ETF called A300, which is the equivalent of what I call the impossible benchmark.

As you’ll know, something like 86% of fund managers underperform the market. And the reason they do is because it’s very hard to beat a compounding index – and that’s what the ASX 300 Accumulation Index is. It’s almost suicide for fund managers to adopt that as their benchmark, but so many of them do.

Here you are with an index that almost no one could beat – and it’s now available in an ETF thanks to Global X. They call it a “core” ETF. Most of the ETFs Global X is known for are smarter ETFs, but here we are with a core ETF.

It’s coming in at a management expense ratio below the really popular, other index-hugging ETFs like STW, VAS and IOZ. The only one that has the same expense ratio of 0.04% is A200.

So here you have A300 – an impossible benchmark or impossible fund to beat. It’ll compound dividends for you and offers a very cheap way to buy a benchmark that nobody can beat. Well done, Global X.


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Disclaimer: Marcus Today Pty Ltd is a Corporate Authorised Representative (No. 310093) of AdviceNet Pty Ltd ABN 35 122 720 512, holder of Australian Financial Services Licence No. 308200. The information contained in this article is general in nature and does not take into account your personal objectives, financial situation, or needs. Before making any investment decision, you should consider the appropriateness of the information with regard to your own circumstances and, if necessary, seek professional advice. Past performance is not a reliable indicator of future performance.

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