Exchange Traded Funds (ETFs)

An ETF is an investment fund that trades on an exchange, generally designed to track the performance of a commodity or a specific market index and provide the returns of that index/commodity. An example of a commodity is gold, while an example of an index is the ASX200.

 

ETFs provide investors with exposure to a variety of investment strategies, regions and asset classes. Buying and selling an ETF is as easy as purchasing stocks, as ETFs are traded on the ASX, meaning that you are not required to open a separate trading account. ETFs pay out the full dividend that comes with the stocks held within the funds.

 

Investment management fees for ETFS are deducted by the ETF or fund company. The management fees include costs related with managing the ETF, such as custodian fees, accounting fees, audit fees and index licence fees. The ETFs value is adjusted daily in order to reflect the management fees deduction, meaning that investors do not see these fees on their statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Examples of ETFs that currently trade on the ASX include:

VAP: Vanguard Australian Property Securities Index ETF

  • The ETF invests in property securities listed on the ASX. The property sectors in which the ETF invests include retail, office, industrial and diversified property holdings.

  • Management fee of 0.2% per annum.

  • Paid a dividend of $0.1326 on 16-Oct-20 and $0.7545 on 16-July-20.

  • Portfolio consists of Goodman Group (GMG), Scentre Group (SCG), Stockland (SGP), Dexus (DXS) and others.

 

ACDC: ETFS Battery Tech & Lithium ETF

  • The ETF aims to track the performance of a portfolio of stocks that are providers of electro-chemical energy storage technology and mining companies that produce metals that are primarily used for manufacturing batteries.

  • Management fee of 0.69% per annum.

  • Paid a dividend of $0.7918 on 15-July-20.

  • Portfolio consists of Galaxy Resources (GXY), Pilbara Minerals (PLS), Tesla (TSLA:NAS), Renault SA (RNO:PAR) and others.

 

MNRS: BetaShares Global Gold Miners ETF

  • The ETF gives exposure to a portfolio of gold mining companies from around the world, enabling Australian investors to diversify beyond the relatively minute domestic gold mining sector.

  • Management fee of 0.57% per annum.

  • Paid a dividend of $0.1555 on 16-July-2020.

  • Portfolio consists of Franco-Nevada Corp (FNV:TOR), Newmont Corp (NEM:NYS), Barrick Gold Corp (ABX:TOR), Agnico Eagle Mines Ltd (AEM:TOR) and others.

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