Key Highlights
- Actively managed Australian long-short ETF targeting returns above the S&P/ASX 200 Accumulation Index over the long term.
- Portfolio holds 104 companies with a focus on large-cap Australian equities.
- Financial Services and Basic Materials represent the largest sector allocations.
- Combines long and short positions to identify opportunities across different market environments.
Ten Cap Alpha Plus Complex ETF (ASX:TCAP) is an actively managed exchange-traded fund designed to generate returns above the S&P/ASX 200 Accumulation Total Return Index before fees and expenses over the long term. Rather than following a passive index-tracking strategy, the fund invests in selected Australian shares through a combination of long and short positions, providing exposure to both rising and falling market opportunities.
The long-short structure distinguishes TCAP from conventional Australian equity ETFs by allowing portfolio managers to establish positions in companies they expect to outperform while taking short positions in securities that may underperform. This investment process seeks to enhance portfolio flexibility across varying market conditions while maintaining broad exposure to Australian listed equities.
Investment Strategy
TCAP follows an actively managed investment process focused on identifying opportunities across the Australian share market. The portfolio combines long investments with selective short positions, enabling the fund to pursue returns that are not solely dependent on broad market appreciation.
Unlike passive ETFs that closely mirror benchmark weightings, TCAP allows portfolio managers to actively adjust holdings based on research, market conditions and company-specific opportunities. This flexibility enables the portfolio to evolve over time as investment prospects change across sectors and individual businesses.
The benchmark serves as a reference point for measuring performance rather than determining portfolio construction, highlighting the fund’s active management philosophy.
Portfolio Composition and Diversification
The ETF holds investments in 104 companies, providing broad exposure across Australia’s listed equity market. More than half of the portfolio remains outside the top ten holdings, supporting diversification while maintaining meaningful positions in several of Australia’s largest listed companies.
Large-cap companies dominate the portfolio, with more than 94% of investments allocated to businesses valued above A$1 billion. Medium-sized companies account for a smaller allocation, while exposure to smaller companies remains limited.
The fund also maintains a modest cash allocation alongside its equity investments, supporting portfolio management and operational flexibility.
Sector Allocation
Financial Services represents the largest sector allocation within TCAP, accounting for approximately one-third of the portfolio. Australia’s banking sector therefore plays a significant role in overall portfolio composition. Basic Materials follows as the second-largest allocation, reflecting continued exposure to Australia’s globally significant mining and resource industries.
Healthcare, Industrials and Consumer Cyclical sectors provide additional diversification, while Consumer Defensive, Real Estate, Energy, Communication Services and Technology contribute smaller allocations. This distribution provides exposure across a wide range of industries while allowing active management to determine sector positioning based on investment opportunities.
Compared with the broader category, TCAP maintains a relatively higher weighting to Financial Services while remaining broadly diversified across major segments of the Australian economy.
Major Holdings
The ETF’s largest investments include several well-established Australian companies. BHP Group and Commonwealth Bank of Australia represent the two largest holdings, followed by Westpac Banking Corporation, National Australia Bank, ANZ Group Holdings, Macquarie Group, Woodside Energy Group, Brambles, Goodman Group and Woolworths Group.
Collectively, the top ten holdings account for just over half of the portfolio, reflecting a measured level of concentration while maintaining exposure to a broad range of additional companies. These holdings span banking, mining, logistics, real estate, energy and consumer sectors, illustrating the diversified nature of the underlying portfolio.
Geographic Exposure and Risk Considerations
TCAP is primarily focused on Australian equities, with approximately 93% of portfolio exposure allocated to Australia. Limited exposure to the United States, China and Canada reflects either direct investments or portfolio-related positioning associated with the fund’s investment process.
As an actively managed long-short ETF, TCAP is subject to equity market risk alongside the additional complexities associated with short-selling strategies. The effectiveness of stock selection and portfolio management decisions plays an important role in investment outcomes. While short positions may help manage downside exposure under certain market conditions, they also introduce additional risks compared with traditional long-only equity funds.
The fund’s management fee of 0.97% reflects the active management and specialised investment strategy employed within the portfolio.
Conclusion
Ten Cap Alpha Plus Complex ETF offers investors an actively managed approach to Australian equities through a combination of long and short positions. Its diversified portfolio of more than 100 companies, emphasis on large-cap businesses and significant exposure to Financial Services and Basic Materials distinguish its investment profile. Rather than tracking the market, TCAP seeks to generate long-term returns through active stock selection and portfolio management, making it a differentiated participant within Australia’s long-short ETF segment.