How to invest in Australia using ETFs
How do I invest in Australian stocks?
The easiest way to invest in the whole Australian stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Australian stock market you find 2 indices, which are tracked by ETFs.
Alternatively, you can invest in indices on the Pacific region. In these indices the weight of Australia varies. The MSCI Pacific contains less than 20% Australia, whereas the MSCI Pacific ex Japan weights Australia with around 60%.
Performance of Australian stocks (S&P/ASX 200)
Indices in comparison
The best indices for ETFs on Australia
For an investment in the Australian stock market, 2 indices tracked by 3 ETFs are available. On the MSCI Australia index there is 1 ETF. On the S&P/ASX 200 index there are 2 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.40% p.a. and 0.50% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
MSCI Australia |
Australia | 1 ETF | 67 (31/08/18) |
The MSCI Australia index tracks large and mid cap companies from Australia.
Index factsheet |
S&P/ASX 200 |
Australia | 2 ETFs | 200 |
The S&P/ASX 200 index tracks the 200 largest and most actively traded Australian companies.
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Australia UCITS ETFIE00B5377D42 | 327 | 0.50% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers S&P/ASX 200 UCITS ETF 1DLU0328474803 | 101 | 0.50% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor Australia (S&P ASX 200) UCITS ETF D-EURLU0496786905 | 59 | 0.40% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Australia | -1.04% | 1.98% | 4.43% | 6.06% | 33.04% | |
| S&P/ASX 200 | -0.65% | 1.29% | 3.74% | 6.84% | 32.91% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| S&P/ASX 200 | 1.51% | 5.89% | 13.44% | 1.40% | 9.14% | |
| MSCI Australia | 1.87% | 5.14% | 14.64% | 0.04% | 9.26% |
Source: justETF.com; As of 31/08/18; Calculations in EUR based on the largest ETF of the respective index.
The best Australia ETFs
by 1 year return
| 1 | Xtrackers S&P/ASX 200 UCITS ETF 1D | 6.84% |
| 2 | Lyxor Australia (S&P ASX 200) UCITS ETF D-EUR | 6.83% |
| 3 | iShares MSCI Australia UCITS ETF | 6.06% |
The cheapest Australia ETFs
by total expense ratio (TER)
| 1 | Lyxor Australia (S&P ASX 200) UCITS ETF D-EUR | 0.40% p.a. |
| 2 | iShares MSCI Australia UCITS ETF | 0.50% p.a. |
| 3 | Xtrackers S&P/ASX 200 UCITS ETF 1D | 0.50% p.a. |
Pacific indices with a large share of Australia
Besides Australia ETFs, there are a number of ETFs on the Pacific stock markets with Australia exposure. In total, you can invest in 2 Pacific indices tracked by 8 ETFs. The MSCI Pacific ex Japan Index has the largest share of Australian companies with 57.69%. The MSCI Pacific Index contains 19.21% Australia (as of 29/12/2017). The total expense ratio (TER) of ETFs on the Pacific region is between 0.20% p.a. and 0.60% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Pacific | Asia Pacific
Australia: 19.21% (29/12/2017) |
1 ETF | 468 (31/08/18) |
The MSCI Pacific index tracks the equity markets of the developed markets in the Pacific region.
Index factsheet |
| MSCI Pacific ex Japan | Asia Pacific
Australia: 57.69% (29/12/2017) |
7 ETFs | 146 (31/08/18) |
The MSCI Pacific index tracks the equity markets of the developed markets in the Pacific region excluding Japan (Australia, Hong Kong, Singapore and New Zealand).
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core MSCI Pacific ex Japan UCITS ETF (Acc)IE00B52MJY50 | 1,424 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers MSCI Pacific ex Japan Index UCITS ETF 1CLU0322252338 | 543 | 0.45% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI Pacific ex-Japan UCITS ETF (Dist)IE00B4WXJD03 | 349 | 0.60% p.a. | Distributing | Ireland | Full replication | |
| ComStage MSCI Pacific TRN UCITS ETFLU0392495023 | 244 | 0.45% p.a. | Distributing | Luxembourg | Unfunded swap | |
| Amundi Index MSCI Pacific ex Japan UCITS ETF - EUR (C)LU1602144906 | 193 | 0.45% p.a. | Accumulating | Luxembourg | Full replication | |
| UBS ETF (LU) MSCI Pacific (ex Japan) UCITS ETF (USD) A-disLU0446734526 | 165 | 0.30% p.a. | Distributing | Luxembourg | Full replication | |
| HSBC MSCI Pacific ex Japan UCITS ETF USDDE000A1C22P6 | 30 | 0.40% p.a. | Distributing | Ireland | Full replication | |
| ComStage MSCI Pacific ex Japan TRN UCITS ETFLU0392495296 | 12 | 0.45% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Pacific ex Japan | -1.05% | -1.15% | 2.31% | 5.52% | 33.42% | |
| MSCI Pacific | 0.21% | -1.51% | 0.63% | 8.45% | 24.65% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Pacific ex Japan | 0.90% | 10.60% | 11.29% | 1.82% | 12.70% | |
| MSCI Pacific | 0.92% | 8.96% | 7.63% | 14.03% | 10.18% |
Source: justETF.com; As of 31/08/18; Calculations in EUR based on the largest ETF of the respective index.