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%.

0.40% p.a. - 0.50% p.a.
annual total expense ratio (TER) of Australia ETFs
on the Australian stock market, which are tracked by ETFs
on the Australian stock market
The best indices for Australia ETFs

Performance of Australian stocks (S&P/ASX 200)

1 month: 2.02%
1 year: 4.29%
3 years: 15.43%
5 years: 37.41%

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 68
(29/12/17)
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 338 0.50% p.a. Accumulating Ireland Full replication
Xtrackers S&P/ASX 200 UCITS ETF 1DLU0328474803 102 0.50% p.a. Distributing Luxembourg Full replication
Lyxor Australia (S&P ASX 200) UCITS ETF D-EURLU0496786905 64 0.40% p.a. Distributing Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
S&P/ASX 200 1.15% 9.94% 0.94% 5.73% 17.36%
MSCI Australia 1.47% 10.99% 1.41% 6.13% 16.72%
Index   2018
in %
2017
in %
2016
in %
2015
in %
2014
in %
S&P/ASX 200 0.94% 5.89% 13.44% 1.40% 9.14%
MSCI Australia 1.41% 5.14% 14.64% 0.04% 9.26%

Source: justETF.com; As of 30/06/18; Calculations in EUR based on the largest ETF of the respective index.

 

The cheapest Australia ETFs
by total expense ratio (TER)

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Alternative investment opportunities

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 471
(29/12/17)
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 150
(29/12/17)
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 1,444 0.20% p.a. Accumulating Ireland Full replication
Xtrackers MSCI Pacific ex Japan Index UCITS ETF 1CLU0322252338 517 0.45% p.a. Accumulating Luxembourg Full replication
iShares MSCI Pacific ex-Japan UCITS ETF (Dist)IE00B4WXJD03 374 0.60% p.a. Distributing Ireland Full replication
ComStage MSCI Pacific TRN UCITS ETFLU0392495023 245 0.45% p.a. Distributing Luxembourg Unfunded swap
Amundi Index MSCI Pacific ex Japan UCITS ETF - EUR (C)LU1602144906 220 0.45% p.a. Accumulating Luxembourg Full replication
UBS ETF (LU) MSCI Pacific (ex Japan) UCITS ETF (USD) A-disLU0446734526 169 0.30% p.a. Distributing Luxembourg Full replication
HSBC MSCI Pacific ex Japan UCITS ETF USDDE000A1C22P6 31 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 -1.24% 7.50% 0.73% 6.32% 15.87%
MSCI Pacific -1.70% 4.54% 0.53% 7.12% 14.15%
Index   2018
in %
2017
in %
2016
in %
2015
in %
2014
in %
MSCI Pacific 0.53% 8.96% 7.63% 14.03% 10.18%
MSCI Pacific ex Japan 0.73% 10.60% 11.29% 1.82% 12.70%

Source: justETF.com; As of 30/06/18; Calculations in EUR based on the largest ETF of the respective index.