At a ceremony in Sydney tonight celebrating BetaShares raising $5 billion funds under management, the company's founder and CEO Alex Vynokur said the new development would allow an Australian exchange-traded fund participant to be globally competitive.

Mr Vynokur announced that BetaShares will launch a new product, the BetaShares Australia 200 ETF.

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"The A200 will give investors exposure to 200 of the largest companies listed on the ASX by market capitalisation in a single trade, with management costs of only 0.07% p.a [AKA 7 basis points]," he said.

“A200 is a game-changer for the Australian wealth management industry, significantly reducing the cost of investing in a diversified portfolio of Australian shares.'

At the time of the announcement, the lowest cost Australian shares ETF was Vanguard's VAS, which charges management costs of 0.14 per cent per annum according to its website.

Mr Vynokur said the launch means the lowest cost Aussie ETF will now be on the ASX instead of being listed in New York.