Buying an ETF? Here are our best resources
Access our best resources for diving into the ETF market.
The Australian ETF industry clocked its best ever month this January with cash flows of $4.6 billion.
The popularity of exchange traded funds (“ETFs”) continues to rise with over 50% of Australian investors now holding an ETF in their portfolio and 2024 seeing a record number of new launches to market.
For the less experienced investors, an ETF is an investment fund that is traded like an ordinary share on an exchange. The vehicle can hold multiple types of assets and generally tracks the performance of an index. Approximately 90% of total Australian ETF industry assets are index-tracking.
The new ETF landscape
The Global X Australian ETF Market Scoop found that the ETF market grew almost 40% in 2024 with 401 products on offer. Furthermore, it hit an unprecedented milestone last year with record net flows of $31 billion.
The popularity of ETFs is constantly rising as investors gain confidence in the increasing number of ETFs delivering consistent positive performance.
Unsurprisingly, the best performing ETFs this year were cryptocurrency based after the rise of Bitcoin and Ethereum following the US election.
Clean energy ETFs largely failed to impress after a tough year of performance with the impact of higher borrowing costs weighing in on earnings and ultimate share price performance.
Most popular ETFs for 2024
Refreshingly, low-cost ETFs that tracked a broad-based market index experienced the most 1-year net flows among Australian investors. The popularity of these broad based index tracking ETFs indicates the growing use of ETFs as a one stop shop for diversification.
Our best resources
For the beginners
Entering the world of ETFs for the first time? Read our comprehensive beginners Exchange Traded Funds (ETFs) Investing Guide.
ETFs are often portrayed as investments for ‘beginner’ investors being more approachable than picking individual shares. However, all investors should be cautious before choosing an ETF. We run through things to consider before picking an ETF.
Once you’re well versed in the world of ETFs, the next natural step is to build a portfolio. Here are 4 steps to create an ETF portfolio to achieve your investing goals.
Unlike direct equity holdings, owning an ETF involves ongoing holding costs as well as transaction costs. How important these two costs are relative to each other depends on an investor’s time horizon and the amount of money invested. We explore the total cost of owning an ETF.
For the more experienced investors
With over 400 products on offer in the Australian market, picking the right ETF can be an overwhelming process. Mark LaMonica describes what the perfect ETF for Australian investors would look like.
A significant factor that determines an investor’s total return outcome is tax. Shani Jayamanne outlines some general rules for how tax may work with foreign investments in overseas shares and ETFs.
Chasing yield is very similar to chasing performance. It can lead to poor outcomes if you don’t do your homework. Mark, our resident income investor, explores how to build a dividend portfolio with ETFs.
Investing in ETFs overseas has become more accessible and cost effective. Although it can seem that increased choice is a win, sometimes more choice results in convolution of portfolios, unnecessary complexity and unintended consequences. Read Shani’s article on the implications of investing in an ETF listed overseas.
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