AUSE VS FAUS: A Comparison of ETFs | ETF Insider
Exchange-Traded Funds (ETFs) have transformed the way investors approach financial markets, providing convenient access to diverse sectors and assets. In this comprehensive article, we will conduct an in-depth comparison between two prominent ETFs: AUSE (Aberdeen Standard Physical Gold Shares ETF) and FAUS (First Trust Australia AlphaDEX Fund). We'll cover crucial aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.
AUSE VS FAUS: Overview
AUSE and FAUS are distinct ETFs that cater to different investment strategies and geographic regions. AUSE focuses on offering exposure to physical gold, while FAUS is designed to track an index of fundamentally selected Australian companies. This fundamental difference influences the ETFs' performance, risk profile, and potential returns, aspects that we will explore further in the subsequent sections.
AUSE VS FAUS: Sectors and Top Holdings
AUSE primarily invests in physical gold and holds gold bullion as its primary asset. On the other hand, FAUS is concentrated in Australian equities, including companies like CSL Ltd, Commonwealth Bank of Australia, and Westpac Banking Corp. Examining the sectors and top holdings of these ETFs is essential for investors to align their investments with their financial goals and risk tolerance.
AUSE overlap AUSE VS FAUS: A Comprehensive Comparison of ETFs
AUSE VS FAUS: Capitalization and Strategy
AUSE has a significant asset under management (AUM), reflecting its popularity among investors seeking exposure to the value of gold. FAUS employs the AlphaDEX methodology to select and weight Australian stocks based on fundamental factors. This strategy aims to outperform traditional market-cap-weighted indices. The differences in capitalization and investment strategy between AUSE and FAUS can lead to varying performance trajectories and risk levels, demanding careful consideration from potential investors.
AUSE VS FAUS: Tracking Methods and Exposure
The AUSE ETF's primary goal is to mirror the performance of physical gold prices. In contrast, FAUS tracks the Nasdaq AlphaDEX Australia Index, composed of Australian companies with favorable fundamental attributes. AUSE's tracking method relies on the price of gold, while FAUS uses a proprietary selection process for its underlying index. Understanding these tracking methods and exposure dynamics is crucial for investors to make informed decisions based on their investment preferences.
Conclusion
AUSE and FAUS offer unique investment opportunities catering to different objectives and regions. For investors seeking more detailed insights into holdings, correlations, overlaps, and other nuances, ETF Insider provides a comprehensive toolset. With its user-friendly application, investors can gain valuable insights into these ETFs and other financial instruments, aiding in making well-informed investment choices.
Disclaimer: This article is for informational purposes only and does not provide investment advisory services.
Sources:
Aberdeen Standard Physical Gold Shares ETF (AUSE) Fact Sheet
First Trust Australia AlphaDEX Fund (FAUS) Overview