ETFs

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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.

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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.

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 Core Infrastructure 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 value^1,2,3,4
Trade online (via website, mobile apps or other platforms) and settle your trade to a CDIA⁵ or 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 the phone 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.

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

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

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

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Fixed Income Securities

Fixed Income Securities trade on the ASX and can provide an income stream over a fixed term. They can be issued by governments and companies.

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 CommSec Mobile 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.

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.