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 | 72 (31/10/16) |
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 | 798 | 0.50% p.a. | Accumulating | Ireland | Full replication | |
| db x-trackers S&P/ASX 200 UCITS ETF (DR) 1DLU0328474803 | 104 | 0.50% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor Australia (S&P ASX 200) UCITS ETF D-EURLU0496786905 | 45 | 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 | -5.54% | -6.70% | 2.07% | 13.07% | 13.31% | |
| MSCI Australia | -6.43% | -7.56% | 2.73% | 14.00% | 12.82% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI Australia | -0.60% | 14.64% | 0.04% | 9.26% | -0.83% | |
| S&P/ASX 200 | 0.01% | 12.61% | 1.40% | 9.14% | -1.40% |
Source: justETF.com; As of 31/05/17; Calculations in EUR based on the largest ETF of the respective index.
The best Australia ETFs
by 1 year return
| 1 | iShares MSCI Australia UCITS ETF | 14.00% |
| 2 | db x-trackers S&P/ASX 200 UCITS ETF (DR) 1D | 13.07% |
| 3 | Lyxor Australia (S&P ASX 200) UCITS ETF D-EUR | 12.07% |
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 | db x-trackers S&P/ASX 200 UCITS ETF (DR) 1D | 0.50% p.a. |
| 3 | iShares MSCI Australia UCITS ETF | 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 59.59%. The MSCI Pacific Index contains 19.81% Australia (as of 31/10/2016). 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: 19.81% (31/10/2016) |
1 ETF | 470 (31/10/16) |
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: 59.59% (31/10/2016) |
7 ETFs | 151 (31/10/16) |
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 | 972 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| db x-trackers MSCI Pacific ex Japan Index UCITS ETF (DR) 1CLU0322252338 | 568 | 0.45% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI Pacific ex-Japan UCITS ETF (Dist)IE00B4WXJD03 | 355 | 0.60% p.a. | Distributing | Ireland | Full replication | |
| Amundi ETF MSCI Pacific ex Japan UCITS ETF DR EURFR0010713669 | 237 | 0.45% p.a. | Accumulating | France | Full replication | |
| ComStage MSCI Pacific TRN UCITS ETFLU0392495023 | 206 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Pacific (ex Japan) UCITS ETF (USD) A-disLU0446734526 | 190 | 0.30% p.a. | Distributing | Luxembourg | Full replication | |
| HSBC MSCI Pacific ex Japan UCITS ETF USDDE000A1C22P6 | 38 | 0.40% p.a. | Distributing | Ireland | Full replication | |
| ComStage MSCI Pacific ex Japan TRN UCITS ETFLU0392495296 | 16 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Pacific | -1.08% | -2.74% | 4.02% | 14.75% | 37.54% | |
| MSCI Pacific ex Japan | -3.53% | -3.59% | 4.77% | 17.19% | 22.80% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI Pacific | 2.68% | 7.63% | 14.03% | 10.18% | 12.85% | |
| MSCI Pacific ex Japan | 4.46% | 11.29% | 1.82% | 12.70% | 0.38% |
Source: justETF.com; As of 31/05/17; Calculations in EUR based on the largest ETF of the respective index.