Question: In Paul Rickard’s excellent article on SMSF performance, he mentioned the strong performance of the “MidCap50”, shares ranked 50-100 on the ASX 200. I have looked for managed funds that focus on this group, and whilst I can find lots of “small/mid cap” focused funds, I have not found anything mentioning the MidCap50 specifically. Can you tell me the names of two or three funds specialising in the MidCap50?
Answer (by Paul Rickard): Thanks for the question.
The Midcap 50 is just an index, and as far as I am aware, there are no funds that specialise or explicitly track this index.
There are, however, a lot of funds that do small/midcap stocks.
Question: We have had Betashares HVST ETF in our super fund for about six months and it has returned great results for us, as the monthly dividend adds up to over 10% pa and about 3% capital gains in the last six months. It has gone better than most things over that period. I know you have reported on it in other questions but nothing recently. Can you update your opinion on it now, based on performance in the last six months and please and advise on possible downsides to HVST?
Answer (by Paul Rickard): HVST has certainly lifted its performance.
According to their July figures:
- Last three months 7.39% (S&P/ASX 200 index 6.88%)
- Last 12 months 5.31% (S&P/ASX 200 2.37%)
The main risk is that due to the investment approach which targets an income return more than double that of the market, it goes through a sustained period of underperformance, as occurred with this fund in 2015.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.