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Spread your investments through diversification
Low-cost, efficient diversification
Exchange Traded Funds (ETFs) are funds that trade on a stock exchange, just like ordinary shares. They combine the investment advantages of a managed fund with the ease and cost-effectiveness of share trading. You can use ETFs for cost-effective, easy access to markets and asset classes you might not otherwise have access to, such as debt, derivatives, currency and commodities.
One simple ETF transaction can help you to diversify your portfolio, as each unit of an ETF represents a basket of securities that often replicates the performance of a specific index or benchmark.
How it works
ETFs trade at a unit price close to the net asset value of the underlying portfolio and each ETF has an ASX code, just like ordinary shares. As ETFs have an open ended structure, you can enter and exit an ETF as you choose (subject to liquidity).
ETF Examples
CommSec offers trading for all ETFs listed on the ASX. The following are examples of ETFs that provide exposure to different asset classes and markets.
Australian Equity Index
Code | Short description | Provides exposure to |
|---|---|---|
VAS | Vanguard Australian Shares Index ETF | Australia’s 300 largest companies, aiming to track the performance of the S&P/ASX 300 index performance. |
QOZ | BetaShares FTSE RAFI Australia 200 ETF | Australia’s 200 largest companies, aiming to track the performance of the FTSE RAFI Australia 200 index. |
STW | SPDR® S&P®/ASX 200 Fund | Australia’s 200 largest and most liquid companies, aiming to track the S&P/ASX 200 Index. |
IOZ | iShares Core S&P/ASX 200 ETF | Australia’s 200 largest companies, aiming to track the performance of the S&P/ASX 200 Index. |
MVW | VanEck Vectors Australian Equal Weight ETF | Largest and most liquid Australian companies equally weighted, aiming to track the performance of MVIS Australian Equal Weight Index. |
Australian Equity Strategy
Code | Short description | Provides exposure to |
|---|---|---|
VHY | Vanguard Australian Shares High Yield ETF | Companies listed on the ASX that have high forecast dividends, aiming to track the performance of the FTSE ASFA Australia High Dividend Yield Index. |
HVST | BetaShares Australian Dividend Harvester Fund | Large cap Australian shares along with regular franked dividend income. |
SYI | SPDR® MSCI Australia Select High Dividend Yield Fund | Australian securities with higher than average dividend yields, aiming to track the MSCI Australia Select High Dividend Yield Index. |
IHD | iShares S&P/ASX Dividend Opportunities ETF | 50 high yielding Australian companies across different sectors, aiming to track the performance of the S&P/ASX Australia Dividend Opportunities Index. |
ZYAU | Global X S&P/ASX 200 High Dividend ETF | 50 of Australia’s highest yielding companies, with a set of three quality filters applied, aiming to track the S&P/ASX 200 Shareholder Yield Index. |
US Equity Index
Code | Short description | Provides exposure to |
|---|---|---|
VTS | Vanguard US Total Market Shares Index | 99.5% of the US stock market, aiming to track the performance of the CRSP US Total Market Index. |
NDQ | BetaShares NASDAQ 100 ETF | 100 largest non-financial securities listed on the NASDAQ, aiming to track the performance of the NASDAQ-100 Index. |
SPY | SPDR® S&P 500® ETF Trust | The top 500 companies in the US, aiming to track the S&P 500® Index. |
IVV | iShares S&P 500 ETF | The top 500 companies in the US, aiming to track the performance of the S&P 500 Index. |
MOAT | VanEck Vectors Morningstar Wide Moat ETF | US companies with wide economic moats that are undervalued, aiming to track the Morningstar Wide Moat Focus Index. |
ZYUS | Global X S&P 500 High Yield Low Volatility ETF | The 50 highest yielding and least volatile stocks from the S&P 500, aiming to track the S&P 500 Low Volatility High Dividend Index. |
Global Equity Index
Code | Short description | Provides exposure to |
|---|---|---|
VGS | Vanguard MSCI Index International Shares ETF | Global developed markets, the largest country exposures are the US, Japan, UK, France and Canada, aiming to track the performance of the MSCI World ex-Australia Index (with net dividends reinvested). |
WRLD | BetaShares Managed Risk Global Share Fund | A diversified portfolio of global shares seeking to reduce the volatility of equity investment returns and defend against losses in declining markets. |
WDIV | SPDR® S&P® Global Dividend Fund | High dividend-yield companies that have increasing or stable dividends for at least 10 consecutive years, aiming to track the S&P Global Dividend Aristocrats Index. |
IWLD | iShares Core MSCI World ex Australia ESG Leaders ETF | Global, developed market large and mid- capitalisation companies with better sustainability credentials relative to their sector peers, aiming to track the MSCI World Ex Australia Custom ESG Leaders Index. |
QUAL | VanEck Vectors MSCI World ex Australia Quality ETF | A diversified portfolio of 300 quality International companies, aiming to track the MSCI World ex Australia Quality Index. |
Global Equity Sectors
Code | Short description | Provides exposure to |
|---|---|---|
VGE | Vanguard FTSE Emerging Markets Shares ETF | Companies listed in emerging markets, aiming to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, hedged into Australian dollars. |
FUEL | BetaShares Global Energy Companies ETF - Currency Hedged | The largest global Energy companies by market cap (excluding companies listed in Australia), hedged into Australian dollars. |
DJRE | SPDR® Dow Jones® Global Real Estate Fund | Equity real estate investment trusts (REITs) and real estate operating companies traded globally, aiming to track the Dow Jones Global Select Real Estate Securities Index. |
IXJ | iShares Global Healthcare ETF | Pharmaceutical, biotechnology and medical device companies traded globally, aiming to track the performance of the S&P Global 1200 Healthcare Sector Index. |
IFRA | VanEck Vectors FTSE Global Infrastructure (Hedged) ETF | A diversified portfolio of global infrastructure securities offering stable income in an uncorrelated asset class, aiming to track the FTSE Developed CoreInfrastructure 50/50 $A Hedged Index. |
ROBO | Global X ROBO Global Robotics and Automation ETF | Global companies generating revenue from the robotics, automation and artificial intelligence megatrend, aiming to track the ROBO Global Robotics and Automation Index. |
Fixed Income
Code | Short description | Provides exposure to |
|---|---|---|
VAF | Vanguard Australian Fixed Interest Index | Investment-grade bonds issued in the Australian bond market, aiming to track the performance of the Bloomberg AusBond Composite 0+ Yr Index. |
AAA | BetaShares Australian High Interest Cash ETF | High interest bank deposit accounts with one or more major banks in Australia. |
BOND | SPDR® S&P®/ASX Australian Bond Fund | The Australian fixed rate bond market, aiming to track the S&P/ASX Australian Fixed Interest Index. |
IAF | iShares Core Composite Bond ETF | Investment-grade bonds issued in the Australian bond market, aiming to track the performance of the Bloomberg AusBond Composite 0+ Yr Index. |
PLUS | VanEck Vectors Australian Corporate Bond Plus ETF | A diversified portfolio of investment grade corporate bonds offering enhanced yield, aiming to track the iBoxx AUD Corporates Yield Plus Mid Price Index. |
Currency
Code | Short description | Provides exposure to |
|---|---|---|
USD | BetaShares U.S. Dollar ETF | Performance of the US Dollar relative to the Australian Dollar. |
POU | BetaShares British Pound ETF | Performance of the British Pound relative to the Australian Dollar. |
EEU | BetaShares Euro ETF | Performance of the Euro relative to the Australian Dollar. |
Any ETF examples on this website are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance.
Benefits
Simplicity and flexibility You can buy and sell ETFs using a CommSec Share Trading Account. ETFs have an ASX code, which you use to trade and track their value. Trades settle like ordinary shares.
Diversification ETFs are a simple, affordable way to diversify. As a single ETF unit represents a basket of securities, just one transaction can spread your investment over multiple underlying companies.
Expanded market and asset access With ETFs, you can gain access to markets and asset classes that may not otherwise be available on the Australian Securities Exchange (ASX).
Cost-efficiency Brokerage for an ETF trade is the same as for an ordinary Australian share trade when settling through a Commonwealth Direct Investment Account (CDIA) 1, with the same minimum investment of $500. ETF Management costs are generally lower than managed funds.
Transparency As ETFs are traded on the Australian Stock Exchange there is clear price visibility. ETF managers also regularly disclose to the market what securities are included in each ETF.
Liquidity ETFs can be bought and sold on market like an ordinary share. It is easy to exit an ETF if you no longer wish to hold the ETF investment.
Risks
Currency and ETF-specific risk
ETFs that offer access to global markets are subject to currency risk, which may erode or magnify returns. Funds that offer exposure to emerging markets or leverage may also entail higher volatility.
Liquidity risk
Most ETFs have adequate liquidity or provide additional liquidity through market makers. An illiquid market can affect the buy/sell spread.
Counterparty risk
ETFs are issued by third party fund managers and product issuers and may involve issuer specific counterparty risk. You should always read the relevant Product Disclosure Statement (PDS).
Rates and fees
Brokerage Rates
Trade execution | Brokerage fee amount by transaction value1,2,3,4 |
|---|---|
Trade online (via website, mobile apps or other platforms) and settle your trade to a CDIA5or CommSec Margin Loan5 | $5.00 (Up to and including $1,000) $10.00 (Over $1,000 up to $3,000 (inclusive)) $19.95 (Over $3,000 up to $10,000 (inclusive)) $29.95 (Over $10,000 up to $25,000 (inclusive)) 0.12% (Over $25,000) |
Trade online (via website, mobile apps or other platforms) and settle into a bank account of your choice.. | $29.95 (Up to and including $9,999.99) 0.31% ($10,000 and above) |
Trades over thephone and deceased estates6 | $59.95 (Up to and including $10,000) 0.52% (Over $10,000 up to $25,000 (inclusive)) 0.49% (Over $25,000 up to $1,000,000 (inclusive)) 0.11% (Over $1,000,000) |
Trades requiring settlement through a third party6 | $99.95 (Up to and including $15,000) 0.66% (Over $15,000) |
1Different brokerage rates apply to CommSec Pocket trades executed through CommSec Pocket App or CommBank App. 2Alternative brokerage rates may be agreed from time to time and (if agreed to) will be payable under clause 22 of CommSec's Share Trading Terms and Conditions. If you are offered, and agree to a tiered brokerage rate, this may result in brokerage charges that differ from rates expressly disclosed within the CommSec FSG. 3Unless otherwise indicated, where a fee or charge is expressed as a percentage, it refers to a percentage of the transaction value. For GST rounding reasons, the final brokerage fee may result in a slight variance from the stated or expected charge, which may exceed two cents for large trades. 4Brokerage charged (shares, warrants, listed managed investments and derivatives): Brokerage at these rates applies each time you trade a stock, warrant, listed managed investment or derivative. 5To be eligible, you must trade online, be CHESS Participant Sponsored with CommSec and settle your trades through either a Commonwealth Direct Investment Account (CDIA) or a CommSec Margin Loan. 6Includes CommSec Margin Lending and Geared Investments Lending Trades and where the Commonwealth Bank exercises its rights under the loan terms and conditions. | |
Management Expense
Fund managers and issuers charge a fee for their professional management of ETFs. You can find the Management Expense Ratio in the relevant Product Disclosure Statement (PDS).
Get started
Open a CommSec Share Trading Account to invest in Exchange Traded Funds
Be up and running in as little as 5 minutes. Start by choosing one of the options below:
Already have a CommSec Share Trading Account?
If you have a CommSec Share Trading Account, login and search for an ETF. Remember trades settle like ordinary shares.
Login and search for ETFs >
Don't have a CommSec Share Trading Account?
You’ll need to become a CommSec customer before investing in ETFs. Join now to open a standard Share Trading Account and select ‘Use our cash account'1.
Join now >
Frequently asked questions
What's the difference between an indexed ETF and an actively managed ETF?
Index (or index-tracking) ETFs aim to replicate the performance of a particular index such as the S&P/ASX 50. Actively managed ETFs are based on a particular investment strategy, and their underlying investments are chosen by the fund manager according to that strategy.
How does buying or selling an ETF affect the fund's investments?
ETFs have an open-ended structure, which allows units to be bought and sold as investors enter or exit the fund. This helps ensure that the fund trades close to its net asset value. An ETF's price is valued throughout the trading day like a share, and it can be bought or sold with the same T+2 settlement period as shares (two (2) business days after your trade).
How do I start trading ETFs?
All you need to start trading ETFs listed on the ASX is a CommSec trading account.
What are the liquidity risks?
Although most ETFs are liquid, and will generally provide additional liquidity by market makers providing buy and sell prices, some ETFs do not provide liquidity via market making which may increase the liquidity risk.
Do ETFs offer exposure to ASX indices?
Yes. There are domestic ETFs traded through the ASX that track ASX indices.
Do ETFs provide dividends/distributions?
An ETF may provide income for investors through distributions. The value of the ETF will change in value as the underlying portfolio of assets changes (i.e. as securities within the ETF pay dividends and distributions, this will be reflected in the net value of the ETF).
Do ETFs charge fees?
ETF issuers/fund managers may charge a management fee. However, these fees for ETFs/ETCs are usually lower than those for managed funds as ETFs typically have lower operating costs. Brokerage applies when you buy or sell an ETF, just like shares. For more information see the relevant Product Disclosure Statement, prospectus or equivalent disclosure document from the issuer of the ETF.
Do ETFs offer exposure to international indices?
Yes, some do. International Indexed ETFs listed on the ASX track an international market index, providing exposure to global, regional and single country markets.
Can I buy ETFs on my margin loan?
Yes. If the relevant ETF is on the CommSec Margin Lending approved securities list, you can buy it on your margin loan.
Financial Services Guide TheFinancial Services Guide("FSG") provides information about Commonwealth Securities to help you decide whether to use the financial services we offer.
Download the Financial Services Guide
CommSec Document Download Acceptance
Before you obtain any products or services from CommSec, you must view the most recentFinancial Services Guide (FSG).
By clicking YES below I am agreeing to be given the FSG and PDS electronically by downloading these documents from this website.
Note: If you would like to receive the CommSec Financial services Guide (FSG) and relevant Product Disclosure Statement (PDS) by mail please contact us on 13 15 19.
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Share Trading Terms and Conditions For a complete outline of what your obligations are when you buy or sell shares through CommSec please review the Share Trading Terms and Conditions document.
Download the Share Trading Terms and Conditions
CommSec Document Download Acceptance
Before you obtain any products or services from CommSec, you must view the most recentFinancial Services Guide (FSG).
By clicking YES below I am agreeing to be given the FSG and PDS electronically by downloading these documents from this website.
Note: If you would like to receive the CommSec Financial services Guide (FSG) and relevant Product Disclosure Statement (PDS) by mail please contact us on 13 15 19.
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Important Information This website notes some features of ETFs and ETCs however is not a summary, please consider the product disclosure statement, or equivalent disclosure document, available from the product issuer before making any decision about the relevant ETF and ETC. 11 The target market for this product can be found within the product’s Target Market Determination. The information on this site has been prepared without taking account of the objectives, needs, financial and taxation situation of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regards to their own objectives, needs, financial and taxation situation, and, if necessary, seek appropriate independent financial and taxation advice. You can view the product Terms and Conditions, Product Disclosure Statement, Best Execution Statement, Financial Services Guide and should consider them before making any decision about these products and services.
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