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).

  • ETFs are a basket of securities created by issuers or fund managers.
  • Each ETF generally looks to replicate the returns of a specific index/benchmark. 
  • Each ETF is allocated an ASX code and lists on the Australian Securities Exchange as one entity. 
  • You trade and settle ETFs like ordinary shares, with a minimum investment of $500.

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.

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.

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.

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.

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 All Cap ETF

Large, mid and small-cap stocks in global developed markets, aiming to track the MSCI World Investable Market 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.

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 Transition 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 Core Infrastructure 50/50 $A Hedged Index.

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 Markit iBoxx AUD Corporates Yield Plus Index.

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, with the same minimum investment of $500.1 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

Trade Execution

Brokerage fee amount by transaction value

Trade online and settle your trade to a CDIA1 or CommSec Margin Loan1

$10.00 (Up to and including $1,000)

$19.95 (Over $1,000 up to $10,000 (inclusive))

$29.95 (Over $10,000 up to $25,000 (inclusive))

0.12% (Over $25,000)

Trade online and settle into a bank account of your choice

$29.95 (Up to and including $9,999.99)

0.31% ($10,000 and above)

Share Trades over the Phone2

$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)

CommSec Share Packs online3

$66 per pack of 6 stock (equates to $11 per stock4)

CommSec Share Packs over the phone3

$181.50 per pack of 6 stock (equates to $30.25 per stock4)

Trades requiring settlement through a third party5

$99.95 (Up to and including $15,000)

0.66% (Over $15,000)

One Off Trades

$66.00 (Up to and including $10,000)

0.66% (Over $10,000)

Deceased Estates

$81.90 (Up to and including $15,000)

0.54% (Over $15,000)


 

To 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.

Brokerage charged (shares, warrants and listed managed investments): Brokerage at these rates applies each time you buy or sell a stock, warrant or listed managed investment.

Normal brokerage will apply when a stock acquired through CommSec Share Packs is subsequently sold.

Amount per share will be noted as brokerage on each confirmation issued. There will be no substitution should a stock have a trading halt placed on it.

Includes third party Margin Lending, and where the Commonwealth Bank exercises its rights under the loan Terms and Conditions.

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.

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’.

Frequently asked questions

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.

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).

All you need to start trading ETFs listed on the ASX is a CommSec trading account.

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.

Yes. There are domestic ETFs traded through the ASX that track ASX indices.

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).

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.

Yes, some do. International Indexed ETFs listed on the ASX track an international market index, providing exposure to global, regional and single country markets.

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

The Financial 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

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

Other Forms & Brochures

For all other forms & brochures regarding other financial services we offer.

If you are looking for administrative forms, please login and proceed to Support > Forms & Downloads.

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Margin Loan

A CommSec Margin Loan is a powerful investment tool you can use to unlock the equity in your existing investments, and combine with borrowed funds to expand and diversify your portfolio.

Mobile Trading

With our free CommSecMobile App you can watch the market, manage your portfolio and trade shares on the go. Stay up-to-date with live quotes, news and announcements, plus use our charts to identify your next trading opportunity.

Term Deposits

Enjoy a fixed rate of return for the nominated term, so you know exactly what your investment is worth.

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.

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.

 

Disclaimer

This site is directed and available to and for the benefit of Australian residents only. © Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ("CommSec") is a wholly owned, but non guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and both entities are incorporated in Australia with limited liability.

By clicking on the "Download the CommSec App" buttons above, you will be directed to itunes.apple.com or play.google.com. These sites are not affiliated with CommSec and may offer a different Privacy Policy and level of security.

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