Start an investment portfolio using ETFs
While starting to invest can appear daunting, ETFs offer a simple, cost-effective way to gain access to the sharemarket.
As ETFs generally aim to track an index, or provide exposure to an entire sector, this can help reduce the pressure of picking individual shares, too.
Here we explore some of the ways those new to investing can use ETFs in a portfolio.
Building a ‘core’
One of the easiest ways to get started in shares is to invest in an index-tracking ETF that provides access to an entire portfolio of companies.
BetaShares has a number of ETFs that provide access to broad market indices – meaning investors can ‘buy the market’ in a single trade.
01.
BetaShares Australia 200 ETF
ASX: A200
Management Costs: 0.07%
Exposure: Australian shares
A200 is the lowest-cost Australian shares ETF in the world*. A200 provides exposure to the performance of the largest 200 ASX-listed companies, for the ultra-low management cost of 0.07% per year (or 70c for every $1,000 invested).
Portfolio holdings include: Commonwealth Bank, BHP, Westpac, CSL Ltd, ANZ, NAB, Woolworths, Telstra.
Why consider A200?
- Portfolio diversification
- Ultra-low cost
- A core building block of an Australian shares allocation
02.
BetaShares FTSE RAFI Australia 200 ETF
ASX Code: QOZ
Management Costs: 0.40%
Exposure: Australian shares
QOZ aims to track the performance of an index (before fees and expenses) that comprises the top 200 companies listed on the ASX as measured by fundamental size.
Portfolio holdings include: Commonwealth Bank, BHP, Westpac, CSL Ltd, ANZ, NAB.
Why consider QOZ?
- Portfolio diversification
- Aims to produce superior long-term performance compared to products based on market cap-weighted indices
- A core building block of an Australian shares allocation
03.
BetaShares NASDAQ 100 ETF
ASX Code: NDQ
Management Costs: 0.48%
Exposure: International shares
Invest how you live with BetaShares NDQ. NDQ provides exposure to the 100 companies that make up the NASDAQ 100 Index. Many of these companies are among the world’s most innovative and continue to revolutionise our everyday lives.
Portfolio holdings include: Microsoft, Apple, Facebook, Amazon, Netflix and Google.
Why consider NDQ?
- Global technology sector exposure
- Portfolio diversification
- Cost-effective
04.
BetaShares Global Quality Leaders ETF
ASX Code: QLTY
Management Costs: 0.35%
Exposure: International shares
QLTY seeks to provide investors with exposure to a diversified portfolio of 150 quality global companies, outside of Australia.
Portfolio holdings include: Adobe, Intel, Visa, 3M.
Why consider QLTY?
- Access to the world’s highest-quality companies
- Portfolio diversification
- Broad region and sector access
*Source: Bloomberg, based on expense ratios of Australian shares ETFs traded in Australia or on overseas exchanges.
Once the core of a portfolio is in place, additional investments can be added for a particular investment niche, such as emerging markets or an industry sector. ETFs can also be used to gain exposure to these non-core, or ‘satellite’, components of your portfolio. Constructing a portfolio in this way is referred to as a core/satellite approach to investing.
Investing for your retirement
As the golden years edge closer, most investors want to have accumulated a comfortable nest-egg to live as they please, and have investments in place to meet regular income requirements.
Did you know?
That ten years out from retirement, many experts suggest investors should be looking to have their portfolio allocated to about 50% in shares, and 50% in less volatile investments such as bonds and cash. It is further suggested that an investor’s asset allocation should be steadily and consistently rebalanced in the years after the 10 year mark, so that most assets will be tilted towards lower risk assets.
BetaShares understands the importance of investing for retirement. Regardless of the timeframe, we have a range of funds that are tailored towards the needs of retirees and pre-retirees, and will help you achieve your goals.
Maximise income potential
Investors heading into retirement are often attracted to income-generating investments which they can use to fund their lifestyle. In today’s low interest rate environment this is more challenging than ever before. BetaShares’ income-focused funds allow you to simply and cost-effectively diversify income streams across asset classes, giving you the ability to select funds to suit your risk profile. Explore a selection of the BetaShares income range below, covering cash, bonds, hybrids and shares.
An attractive return on your cash
Finding attractive returns on cash deposits has become increasingly difficult. Investors are finding that their cash deposits don’t provide the return they once did, with many looking for better ways to invest their cash.
While term deposits have traditionally been a way for investors to benefit from better interest rates than those available from ‘at call’ bank accounts, it usually means locking cash away. Accessing your cash from term deposits before the end of the term can be costly.
BetaShares’ Australian High Interest Cash ETF (ASX: AAA) provides investors with the benefits of an investment that is accessible daily via a trade on the ASX, as well as regular income, paid monthly.
01.
BetaShares Australian High-Interest Cash ETF
ASX Code: AAA
Management Costs: 0.18%
Exposure: Cash
Distributions: Monthly
AAA provides exposure to Australian cash, with attractive and regular income distributions aiming to exceed the 30-day Bank Bill Swap Rate (after fees and expenses). AAA holds Australian dollars in bank deposit accounts with one or more selected banks regulated in Australia by APRA.
Why consider AAA?
- Attractive interest rates that are competitive with ‘at call’ bank deposits and term deposits, without the need to lock up cash for extended periods or seek out ‘honeymoon’ rates
- Monthly distributions
- Income generation with a high level of capital security
Invest in a diversified portfolio of Australian Bonds
Fixed income has long been acknowledged as a core building block of a balanced portfolio, providing defensive characteristics and diversification benefits to investors.
With generally lower risk than shares, fixed income is a natural complement to a share portfolio.
BetaShares offers a comprehensive fixed income fund suite, providing exposure to Australian government bonds, Australian investment grade corporate bonds, Australian bank senior floating rate bonds, or actively managed Australian fixed income securities.
The funds in our fixed income suite provide monthly income to investors, are cost-effective and simple to access on the ASX using an online brokerage account, or by speaking to a financial adviser. Explore our range below.
01.
BetaShares Australian Government Bond ETF
ASX: AGVT
Management Costs: 0.22%
Exposure: Australian government bonds
Distributions: Monthly
AGVT provides exposure to a portfolio of high-quality, income-producing bonds issued by Australian federal and state governments, and supranational and sovereign agencies. As the majority of AGVT’s portfolio is invested in Australian federal and state government bonds, AGVT offers fixed-income exposure of superior credit quality in the Australian bond market, relative to corporate bonds.
02.
BetaShares Legg Mason Australian Bond Fund (managed fund)
ASX Code: BNDS
Management Costs: 0.42%
Exposure: Australian fixed income securities
Distributions: Monthly
BNDS provides access to an actively managed and broadly diversified portfolio of high quality Australian fixed income securities. BNDS is managed by leading fixed income manager, Western Asset.
Why consider BNDS?
- A core fixed income solution
- Monthly income
- Risk management focus
03.
BetaShares Australian Investment Grade Corporate Bond ETF
ASX Code: CRED
Management Fee: 0.25%
Exposure: Investment grade fixed rate corporate bonds
CRED provides exposure to a diversified portfolio of investment grade fixed-rate Australian corporate bonds. CRED’s investment strategy preferences securities in its portfolio which offer superior expected returns to Australian government bonds. In addition, investment grade fixed-rate Australian corporate bonds historically have tended to rise in value in periods when Australian shares have fallen, providing diversification benefits and defensive characteristics to portfolios.
Why consider CRED?
- Attractive, monthly income
- Diversification and defence
- Low cost
04.
BetaShares Australian Bank Floating Rate Bond ETF
ASX Code: QPON
Management Fee: 0.22%
Exposure: Investment grade floating rate corporate bonds
Distributions: Monthly
QPON provides exposure to a portfolio of some of the largest and most liquid senior floating rate bonds issued by Australian banks. Historically, Australian bank senior floating rate bonds have had a high level of capital stability, and limited capital variability during market declines.
Why consider QPON?
- Attractive, monthly income
- Stability and portfolio diversification
- Low cost
A smarter way to invest in hybrids
Due to their attractive income levels, franking credits and relative capital stability, hybrids have, for many years, been a popular investment option for Australian investors.
Hybrids are a unique type of investment, combining features of both bonds and shares. Investors are often attracted to hybrids because they typically offer lower risks than shares as well as higher income levels than bonds and cash.
While hybrids are an attractive investment in many ways, many investors may not really appreciate they come with risks and complexity. While individual hybrids may seem the same, they can be quite different in terms of their key features.
A failure to properly understand each hybrid security’s specific makeup can result in taking on unintended risks, and possibly ending up with unfavourable investment results.
BetaShares’ HBRD, overseen by one of Australia’s most experienced investment managers in this asset class, provides a convenient alternative to direct ownership of hybrids.
01.
BetaShares Active Australian Hybrids Fund (managed fund)
ASX Code: HBRD
Management Fee: 0.45% p.a1
Exposure: ASX-listed hybrid securities
Distributions: Monthly
HBRD provides exposure to a diversified portfolio of hybrid securities that provides regular, attractive tax-efficient income. HBRD can be used as a complement to or substitute for holding hybrids directly, offering greater portfolio diversification and risk management via a professionally managed solution.
Why consider HBRD?
- Professionally managed hybrids exposure
- Potential for outperformance of hybrids market via active management
- Monthly income
1 HBRD also has a performance fee of 15.5% of any performance above the benchmark.
Generate income from Australian or international shares
BetaShares equity income funds provide income opportunities through exposure to a portfolio of Australian or international shares.
01.
BetaShares Dividend Harvester Fund (managed fund)
ASX: HVST
Management Costs: 0.90%
Exposure: Australian shares
Distributions: Monthly
HVST has been specifically designed to meet the needs of SMSFs, pre-retirees and retiree investors. HVST provides investors with exposure to a portfolio of large capitalisation Australian shares that aims to generate regular franked dividend income, paid monthly, that is at least double the income yield of the broad Australian sharemarket on an annual basis. In addition, HVST aims to reduce the volatility of investment returns and defend against losses in declining markets.
Why consider HVST?
- High income
- Equity returns with reduced downside market risk
- Cost-effective
02.
BetaShares Global Income Leaders ETF
ASX: INCM
Management Costs: 0.45%
Exposure: International shares
Distributions: Quarterly
INCM provides exposure to a diversified portfolio of 100 high-yielding global companies (ex-Australia) along with attractive, regular income.
Portfolio holdings include: Ford Motor Co, Cannon, Wells Fargo, Subaru.
Why consider INCM?
- Attractive income from global shares
- Portfolio diversification
- Cost-effective
Exposure to Australian or international shares, with a smoother investment ride
While you cannot control how the market performs, you do have the ability to allocate assets in a way that may ‘smooth the investment ride’. As retirement approaches, some investors wish to maintain exposure to shares, but are seeking lower levels of risk. BetaShares’ Managed Risk Series aims to defend against market losses while still providing exposure to the growth and income potential of a portfolio of Australian or international shares.
Explore the range below, and click through to the product pages to learn more about the managed risk overlay, portfolio holdings and performance information.
01.
BetaShares Managed Risk Australian Share Fund (managed fund)
ASX: AUST
Management Costs: 0.49%
Exposure: Australian shares
02.
BetaShares Managed Risk Global Share Fund (managed fund)
ASX: WRLD
Management Costs: 0.54%
Exposure: International shares
03.
BetaShares Dividend Harvester Fund (managed fund)
ASX: HVST
Management Costs: 0.90%
Exposure: Australian shares
Investing in international markets
The Australian sharemarket is a concentrated one, with significant weightings to financials and resources.
Investing in international markets is a way to diversify your portfolio and gain exposure to investment opportunities ‘beyond our backyard’.
BetaShares’ range of international funds provides instant access to different regions, sectors, countries – or the whole world, in a single ASX trade.
Accessing opportunities beyond Australia
International markets provide growth opportunities for your portfolio in sectors and industries under-represented in Australia.
International sectors
Sectors such as technology, cybersecurity, healthcare and agriculture are considered growth sectors – a view that is driven by a multitude of factors, including population increases, longer life expectancy and the increasingly online way we live. However, there are only a few Australian companies operating in these sectors.
For example, the BetaShares Nasdaq 100 ETF (ASX: NDQ) provides access to the tech sector, offering exposure to a portfolio of 100 companies such as Facebook, Amazon and Google, in a single trade.
BetaShares offers a comprehensive range international sector funds, scroll down to learn more.
01.
BetaShares NASDAQ 100 ETF
ASX: NDQ
Management fee: 0.48%
Exposure: U.S.International shares
Distributions: Semi - annual
Invest how you live with BetaShares NDQ. NDQ provides exposure to the performance of the 100 largest non-financial securities listed on companies that make up the NASDAQ stock market, by market capitalisation100 Index. Many of these companies are among the world’s most innovative and continue to revolutionise our everyday lives.
Portfolio holdings include: Microsoft, Apple, Facebook, Amazon, Netflix and Google.
Why consider NDQ?
- Access to some of the world’s most revolutionary companies
- Global technology sector exposure
- Portfolio diversification
- Cost -effective
02.
BetaShares Global Healthcare ETF – Currency Hedged
ASX: DRUG
Management Costs: 0.48%
Exposure: International shares
Distributions: Semi - annual
DRUG provides exposure to the largest global healthcare companies, hedged into Australian dollars.
Why consider DRUG?
- Access to the world’s largest healthcare companies
- Reduced currency risk
- Cost-effectiv
03.
BetaShares Global Agriculture ETF – Currency Hedged
ASX: FOOD
Management Costs: 0.57%
Exposure: International shares
Distributions: Semi - annual
FOOD provides exposure to the largest global agriculture companies, hedged into Australian dollars.
Why consider FOOD?
- Access a diversified portfolio of the world’s largest agriculture companies
- Portfolio diversification
- Reduced currency risk
- Cost-effective
04.
BetaShares Global Cybersecurity ETF
ASX: HACK
Management Costs: 0.67%
Exposure: International shares
Distributions: Semi - annual
HACK is a simple and cost-effective way to access a diversified portfolio of the world’s leading
HACK aims to track the performance of the Nasdaq Consumer Technology Association Cybersecurity Index, before fees and expenses cybersecurity companies.
Why consider HACK?
- Access a diversified portfolio of the world’s leading cybersecurity companies
- Portfolio diversification
- Cost-effective
05.
BetaShares Global Gold Miners ETF – Currency Hedged
ASX: MNRS
Management Costs: 0.57%
Exposure: International shares
Distributions: Semi - annual
Access a diversified portfolio of the world’s leading cybersecuritygold mining companies, hedged into Australian dollars.
06.
BetaShares Global Energy Companies ETF – Currency Hedged
ASX:FUEL
Management Costs: 0.57%
Exposure: International shares
Distributions: Semi - annual
FUEL provides exposure to a diversified portfolio of the largest globalworld’s leading energy companies (excluding companies listed in Australia),, hedged intointo Australian dollarsdollars.
Why consider FUEL?
- Access to the world’s largest companies in the global energy sector
- Reduced currency risk
- Cost-effective
Regions and countries
Accessing regions and countries is also simple with BetaShares’ range of international funds. These can be a great diversification tool and provide exposure to markets including Japan or the Eurozone.
International exposure – with less administrative hassle
Australian investors investing in the U.S. share market need to fill in complex paperwork including W8-BEN forms, and may also have offshore brokerage accounts.
However, all BetaShares funds are Australian-domiciled - this means there is no additional paperwork or administration when you buy any of our international funds.
There are no W8-BEN forms to complete, or risk of US estate tax implications. What’s more, our funds are traded on the ASX which means you can buy and sell as simply as you would any Australian share.
| Direct international shares | BetaShares Funds | |
|---|---|---|
| US W8-BEN forms | Yes | No |
| US Estate Tax considerations | Yes | No |
| Available on the ASX | Yes | Yes |
Invest in the world's biggest technology companies
You may be aware that it’s not very easy, or cost-effective, to access global technology giants here in Australia. And if you limit yourself to Australian tech companies, there’s only a very small number to choose from on the ASX, restricting your ability to take advantage of what is currently one of the world’s most striking growth sectors.
Gain exposure to global technology companies simply and cost-effectively
In stark comparison to the ASX, which is heavily concentrated in financials and resources companies, the NASDAQ-100 Index provides investors with exposure to the performance of the 100 largest non-financial companies listed on the Nasdaq Stock Market, by market capitalisation, ~55% of the NASDAQ-100 comprises tech!
The BetaShares NASDAQ 100 ETF (ASX: NDQ) provides access to the NASDAQ-100 Index as simply as buying any share on the ASX. NDQ gives Australian investors the chance to invest in many of the world’s most innovative companies that continue to revolutionise our everyday lives, including Apple, Facebook, Amazon and Google.
Invest how you live, with NDQ!
LEARN MOREHow to invest in BetaShares funds
Adding BetaShares funds to your portfolio is simple, as they’re bought and sold exactly like shares using your online brokerage account or by speaking to your financial adviser.
Learn more and stay informed
Visit our education and insights sections for complimentary ETF investing content, weekly insights and economic updates to help you continue your investing journey.
About BetaShares
BetaShares is a leading manager of ETFs and other Funds available on the ASX. Our aim is to provide intelligent investment solutions to help Australian investors meet their financial objectives. Our range of funds is one of the largest and most diverse in Australia, offering cost-effective access to equitiesshares, bonds, cash, currencies, commodities and alternative strategies.
As at July 2019, BetaShares manages over $8 billion in assets.
Broad range
BetaShares' range of exchange traded funds cover a variety of investment categories and strategies, from simple broad sharemarket exposure, high income strategies through to geared and short funds.
Diversification in
a single trade
BetaShares' exchange traded funds are a simple and cost-efficient way to instantly add investment diversification to your portfolio in a single trade.
Simple to access
and transparent
Investing in one of BetaShares' exchange traded funds can be done as simply as buying a share on the ASX and there is information available on our website about your investment, including disclosure of the underlying holdings in each of our funds.
Invest in socially responsible companies
There’s a growing trend among investors worldwide to align investments with their values, and you may be looking for a way to invest which considers not just a company’s financial performance, but also its performance against ethical, social and environmental principles.
Picking a socially responsible investment
Currently there is not a universally- agreed industry definition of ‘socially responsible’ or ‘ethical’ investing.
This means, unfortunately, that some investment options labelled as such still hold companies that operate in industries, or undertake activities, that many investors would prefer to avoid, including fossil fuels, animal cruelty, armaments and gambling.
BetaShares’ Socially Responsible ETFs were the first ETFs in Australia to combine positive climate leadership screens with a broad set of ESG criteria – meaning you gain exposure to a genuine and true-to-label, socially responsible investment option.
This stringent screening is used for both the BetaShares Global Sustainability Leaders ETF (ASX Code: ETHI) and the BetaShares Australian Sustainability Leaders ETF (ASX Code: FAIR).
Two true-to-label socially responsible investment options from BetaShares:
01.
BetaShares Global Sustainability Leaders ETF
ASX: ETHI
Management fee: 0.59%
Exposure: International shares
Distributions: Semi - annual
ETHI provides exposure to 100 large global stocks (excludingcompanies (outside of Australia) which are climate change leaders, and which are not materially engaged in activities deemed inconsistent with responsible investment considerations.
Why consider ETHI?
Visit Fund Page
01.
BetaShares Australian Sustainability Leaders ETF
ASX: FAIR
Management fee: 0.49%
Exposure: Australian shares
Distributions: Semi - annual
FAIR provides exposure to a diversified portfolio of sustainable, ethical Australian companies.
Why consider FAIR?
Visit Fund Page
Watch this short video to learn more about our ethical funds and how you can access some of the sustainability leaders both at home and abroad.