Exchange traded funds
Reasons to invest in ETFs with nabtrade
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Enjoy great brokerage and a competitive high interest rate for your cash.
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About Exchange Traded Funds
Exchange Traded Funds (ETFs) offer an approach to investing that combines diversification with trading flexibility. This diversification can be across asset classes including Australian and international shares, bonds, property securities and commodities. There are also ETFs which provide exposure specifically to currencies and high-dividend shares.
Some ETFs seek to closely follow the returns (before fees and expenses) of a specific index like the S&P/ASX 200, S&P 500 or MSCI Emerging Markets. Likewise, Exchange Traded Commodities are designed to track the price of a specific commodity or a basket of commodities such as gold, oil, copper and corn.
There is over $3 trillion invested in ETFs globally, with many Australian investors finding new ways to use them to complement their current investment portfolio.
Popular ETFs held by nabtrade clients
Benefits
Capital gains
If your ETFs increase in value you may be able to realise a capital gain.
Dividend income
Many ETFs pay regular dividends, allowing you to generate an income stream. Some funds also provide franking credits along with their dividends, which can help reduce the income tax payable.
Inherent diversification
You can instantly diversify your portfolio across different asset classes and securities.
Risks
Volatility
While ETFs offer the potential for relatively high returns, prices can fluctuate due to market forces.
Tracking error
Some ETFs have complex structures and may not replicate the performance of the underlying index or asset.
Liquidity risk
There may be instances where you’re unable to sell your ETFs due to very low trading volumes.
Pricing
Brokerage
Trade size
- $5,000
- $10,000
- $20,000
- $50,000
Funding options for ETFs
There are two ways to fund your investment:
Next steps Get started with nabtrade
Every new nabtrade customer receives:
- A domestic trading account
- An international trading account
- An integrated cash account
Additional service options include:
- nabtrade High Interest Account
- nabtrade IRESS Trader/ViewPoint
- NAB investment lending solutions
- Self Managed Super Fund setup and management services
Get started today
1. Apply online - Complete our online application form - you can select from an Individual, Joint, Company or SMSF/Trust account.
2. Add cash to your account - watch the tutorial.
3. Start trading