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 ex Japan weights Australia with more than 55%.
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, there are 2 indices available which are tracked by 3 ETFs. 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 | 64 (30/09/20) |
The MSCI Australia index tracks large and mid cap companies from Australia.
Index factsheet |
S&P/ASX 200 |
Australia | 2 ETFs | 200 (30/09/20) |
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 | 225 | 0.50% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers S&P/ASX 200 UCITS ETF 1DLU0328474803 | 55 | 0.50% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor Australia (S&P/ASX 200) UCITS ETF - DistLU0496786905 | 55 | 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 | -4.79% | -1.73% | 21.26% | -14.49% | 2.04% | |
| S&P/ASX 200 | -5.11% | -1.11% | 24.19% | -12.43% | 3.74% |
| Index | 2020 in % |
2019 in % |
2018 in % |
2017 in % |
2016 in % |
|
|---|---|---|---|---|---|---|
| MSCI Australia | -16.39% | 24.85% | -8.13% | 5.14% | 14.64% | |
| S&P/ASX 200 | -14.86% | 24.22% | -8.60% | 5.89% | 13.44% |
Source: justETF.com; As of 30/09/20; Calculations in EUR based on the largest ETF of the respective index.
The best Australia ETFs
by 1 year return
| 1 | Lyxor Australia (S&P/ASX 200) UCITS ETF - Dist | -11.87% |
| 2 | Xtrackers S&P/ASX 200 UCITS ETF 1D | -12.43% |
| 3 | iShares MSCI Australia UCITS ETF | -14.49% |
The cheapest Australia ETFs
by total expense ratio (TER)
| 1 | Lyxor Australia (S&P/ASX 200) UCITS ETF - Dist | 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 4 Pacific indices tracked by 11 ETFs. The MSCI Pacific ex Japan Index has the largest share of Australian companies with 57.66% (as of 29/05/2020). The total expense ratio (TER) of ETFs on the Pacific region is between 0.10% p.a. and 0.60% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| FTSE Developed Asia Pacific ex Japan | Asia Pacific
Australia: 41.45% (29/05/2020) |
2 ETFs | 381 (29/05/20) |
The FTSE Developed Asia Pacific ex Japan index tracks large and mid cap stocks from developed countries in the Asia Pacifc region excluding Japan.
Index factsheet |
| MSCI Pacific | Asia Pacific
Australia: 17.20% (29/05/2020) |
1 ETF | 454 (30/09/20) |
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: 57.66% (29/05/2020) |
7 ETFs | 134 (30/09/20) |
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 |
| Solactive Core Developed Markets Pacific ex Japan Large & Mid Cap | Asia Pacific
Australia: 54.90% (29/05/2020) |
1 ETF | 158 (26/06/20) |
The Solactive Core Developed Markets Pacific ex Japan Large & Mid Cap index tracks large and mid cap stocks from developed countries in the Asia Pacifc region (excluding Japan). The index excludes companies that are engaged in pure coal mining, controversial weapons or, for a continuous period of three years, have violated the UN Global Compact principles.
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 | 1,744 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 | 549 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers MSCI Pacific ex Japan UCITS ETF 1CLU0322252338 | 449 | 0.45% p.a. | Accumulating | Luxembourg | Full replication | |
| Amundi Index MSCI Pacific ex Japan UCITS ETF DR EUR (C)LU1602144906 | 198 | 0.45% p.a. | Accumulating | Luxembourg | Full replication | |
| ComStage MSCI Pacific UCITS ETFLU0392495023 | 161 | 0.45% p.a. | Distributing | Luxembourg | Unfunded swap | |
| iShares MSCI Pacific ex-Japan UCITS ETF (Dist)IE00B4WXJD03 | 147 | 0.60% p.a. | Distributing | Ireland | Full replication | |
| UBS ETF (LU) MSCI Pacific (ex Japan) UCITS ETF (USD) A-disLU0446734526 | 93 | 0.30% p.a. | Distributing | Luxembourg | Full replication | |
| HSBC MSCI Pacific ex Japan UCITS ETF USDIE00B5SG8Z57 | 70 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| L&G Asia Pacific ex Japan Equity UCITS ETFIE00BFXR5W90 | 56 | 0.10% p.a. | Accumulating | Ireland | Optimized sampling | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF AccIE00BK5BQZ41 | 27 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
| Lyxor MSCI Pacific Ex Japan UCITS ETF - DistLU1220245556 | 12 | 0.12% 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 | -4.20% | -2.51% | 14.96% | -12.86% | 1.22% | |
| Solactive Core Developed Markets Pacific ex Japan Large & Mid Cap | -4.07% | -2.61% | 15.19% | -11.21% | - | |
| FTSE Developed Asia Pacific ex Japan | -2.19% | 0.90% | 20.98% | -5.52% | 3.09% | |
| MSCI Pacific | 0.58% | 0.65% | 11.05% | -5.15% | 7.86% |
| Index | 2020 in % |
2019 in % |
2018 in % |
2017 in % |
2016 in % |
|
|---|---|---|---|---|---|---|
| MSCI Pacific ex Japan | -15.91% | 20.47% | -6.19% | 10.60% | 11.29% | |
| Solactive Core Developed Markets Pacific ex Japan Large & Mid Cap | -13.86% | 21.81% | - | - | - | |
| FTSE Developed Asia Pacific ex Japan | -10.63% | 19.20% | -10.31% | 16.18% | 12.08% | |
| MSCI Pacific | -8.78% | 22.15% | -8.91% | 8.96% | 7.63% |
Source: justETF.com; As of 30/09/20; Calculations in EUR based on the largest ETF of the respective index.