Our chosen ETFs
Each Stockspot portfolio invests in low-fee Exchange Traded Funds (ETFs) across various assets. The investment choices are constantly reviewed to ensure you have access to the best possible return and diversification opportunities.
When building our client portfolios we look for ETFs with the following characteristics:
- Total management fees should be less than 0.25% per annum where possible;
- The average daily value of trades should be more than $500,000;
- The fund should be at least $25m so there is a good range of underlying securities;
- The average percentage bid / ask spread of the ETF should be less than 0.25%; and
- We prefer ETFs that are exposed to very low or zero counterparty risk.
Stockspot Model Portfolios
| Australian shares | Selected ETF Second choice VAS tracks the S&P ASX/300 Index, offering greater diversification benefits than STW which tracks the S&P/ASX 200. VAS also has a lower expense ratio. VAS offers indirect exposure to property and commodities via Australian stocks. |
| Global shares | Selected ETF Second choice While VGS has a lower expense ratio, IOO has higher liquidity and a longer listed track record. |
| Emerging markets | Selected ETF Second choice While VGE has a lower expense ratio, IEM has higher liquidity and a longer listed track record. IEM offers exposure to over 800 emerging market shares. |
| Bonds | Selected ETF Second choice Both ETFs have a similar expense ratio and offer similar diversification benefits across Commonwealth and investment-grade corporate bonds. IAF was chosen because of its higher liquidity and longer listed track record. |
| Gold | Selected ETF Second choice GOLD has a lower expense ratio and higher liquidity. We also prefer unhedged gold compared to the hedged version as a diversifier in our portfolios since it provides better protection against domestic currency debasement and a weak Australian economy. |
Stockspot Themes
| Australian shares | Australian dividend shares Australian large companies Australian small companies Australian socially responsible shares |
| Global shares | US shares Global (non-US) shares European shares Japanese shares Chinese shares Asian large companies |
| Property | Australian property Global property |
| Bonds and cash | High interest cash International bonds |
For a full comparison of the ETF market in Australia, download our free Australian ETF Report.
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