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
VAS - Vanguard Australian Shares Index ETF (fee: 0.14%)

Second choice
STW - SPDR S&P/ASX 200 Fund (fee: 0.19%)

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
IOO - iShares Global 100 ETF (fee: 0.40%)

Second choice
VGS - Vanguard MSCI Index International Shares ETF (fee: 0.18%)

While VGS has a lower expense ratio, IOO has higher liquidity and a longer listed track record.

Emerging markets

Selected ETF
IEM - iShares MSCI Emerging Markets ETF (fee: 0.68%)

Second choice
VGE - Vanguard MSCI Emerging Markets Fund ETF (fee: 0.48%)

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
IAF - iShares Core Composite Bond ETF (fee: 0.20%)

Second choice 
VAF - Vanguard Australian Fixed Interest Index ETF (fee: 0.20%)

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
GOLD - ETF Securities Physical Gold (fee: 0.40%)

Second choice
QAU - BetaShares Gold Bullion ETF - AU$ Hedged (fee: 0.49%)

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
VHY - Vanguard Australian Shares High Yield ETF (fee: 0.25%)

Australian large companies
SFY - SPDR S&P/ASX 50 Fund (fee: 0.29%)

Australian small companies
VSO - Vanguard MSCI Australian Small Companies Index ETF (fee: 0.30%)

Australian socially responsible shares
RARI - Russell Australian Responsible Investment ETF (fee: 0.45%)

Global shares

US shares
IVV - iShares Core S&P 500 ETF (fee: 0.07%)

Global (non-US) shares
VEU - Vanguard Ex-US International Shares ETF (fee: 0.14%)

European shares
IEU - iShares Europe ETF (fee: 0.60%)

Japanese shares
IJP - iShares MSCI Japan ETF (fee: 0.48%)

Chinese shares
IZZ - iShares China Large-Cap ETF (fee: 0.74%)

Asian large companies
IAA - iShares Asia 50 ETF (fee: 0.50%)

Property

Australian property
VAP - Vanguard Australian Property Securities Index ETF (fee: 0.25%)

Global property
DJRE - Dow Jones Global Select Real Estate ETF (fee: 0.50%)

Bonds and cash

High interest cash
AAA - BetaShares Australian High Interest Cash ETF (fee: 0.18%)

International bonds
VIF - Vanguard International Fixed Interest Index (Hedged) ETF (fee: 0.26%)


For a full comparison of the ETF market in Australia, download our free Australian ETF Report.

 

 

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