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ETFs

Exchange Traded Funds

Exchange traded funds (ETFs) offer diversified low-cost access to the world’s investment markets. 

What is an ETF?

ETFs are investment funds that typically track the performance of a specific index or benchmark – like the ASX200 or S&P 500.

Just like stocks ETFs are traded on an exchange, so whether you’re new to investing or a seasoned financial professional, ETFs are easy to access and can be used to help diversify and protect your portfolio.

Any advice and information in this publication is of a general nature only. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of an individual’s liabilities, obligations or claim entitlements that arises, or could arise, under taxation law, and we recommend that you consult a registered tax agent. WealthHub Securities Ltd is not a registered tax agent.

Benefits of investing in ETFs

Simple investing

ETFs can be bought and sold in the same way as ASX listed equities via your nabtrade Account. ETFs are issued with an ASX code to help make them easily identifiable.

Diversification

ETFs can be a cost-effective way to diversify your portfolio. An ETF allows you to invest in multiple assets, stocks and industries with one holding.

Access

Access and exposure to international and emerging markets, clean energy, robotics, digitisation and healthcare can easily be achieved through the purchase of an ETF.

Cost savings

Rather than buying multiple securities and incurring multiple brokerage charges, investing in an ETF allows you to gain exposure to multiple securities in an open-ended fund with the one trade and the one brokerage charge.

Visibility

Unlike some managed funds where unit prices are struck at varying intervals and information is hard to find, ETFs are ASX listed so will always have a clear visibility of prices, the constituents of the fund and management information.

Buying and selling ETFs

Like ordinary shares, ETFs can be bought and sold on the ASX, making them a much more liquid investment than a managed fund.

Risks of investing in ETFs

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 assets.

Liquidity risk

There may be instances where you’re unable to sell your ETFs due to very low trading volumes.

There is over $9 trillion* invested in ETFs globally, with many investors finding new ways to use them in their portfolios.

So, what ETFs are people investing in?

*Source: BlackRock, Global Business Intelligence, as of June 2021. In US dollars.

Popular ETFs held by nabtrade clients

Note: Data shown has a 20 minute delay.

This information is a snapshot of nabtrade client holdings only and is in no particular order or priority. This data is updated periodically.

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Reasons to invest in ETFs with nabtrade

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Great value

Enjoy great brokerage and a competitive high interest rate for your cash.

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One destination

Enjoy one platform for all your investments.

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Real-time data

Stream live ASX data so you can make real time investment decisions.

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 ViewPoint
  • NAB Margin Loan
  • Self Managed Super Fund setup and management services

Get started today

  1. Apply - Complete the 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 - Login to nabtrade on desktop or download our app.

Switching from another broker?

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