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%.

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: -4.04%
1 year: -11.47%
3 years: 4.90%
5 years: 38.99%

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
(31.08.20)
The MSCI Australia index tracks large and mid cap companies from Australia.
Index factsheet

S&P/ASX 200

Australia 2 ETFs 200
(31.08.20)
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 222 0.50% p.a. Accumulating Ireland Full replication
Lyxor Australia (S&P/ASX 200) UCITS ETF - DistLU0496786905 55 0.40% p.a. Distributing Luxembourg Unfunded swap
Xtrackers S&P/ASX 200 UCITS ETF 1DLU0328474803 55 0.50% p.a. Distributing Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Australia 3.05% 8.09% -3.78% -8.13% 4.70%
S&P/ASX 200 4.83% 9.75% 0.36% -4.67% 8.57%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI Australia -13.45% 24.85% -8.13% 5.14% 14.64%
S&P/ASX 200 -10.06% 24.62% -8.74% 5.36% 13.88%

Source: justETF.com; As of 31.08.20; 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 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 453
(31.08.20)
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 133
(31.08.20)
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 1,696 0.20% p.a. Accumulating Ireland Full replication
Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 518 0.15% p.a. Distributing Ireland Full replication
Xtrackers MSCI Pacific ex Japan UCITS ETF 1CLU0322252338 437 0.45% p.a. Accumulating Luxembourg Full replication
Amundi Index MSCI Pacific ex Japan UCITS ETF DR EUR (C)LU1602144906 194 0.45% p.a. Accumulating Luxembourg Full replication
ComStage MSCI Pacific UCITS ETFLU0392495023 160 0.45% p.a. Distributing Luxembourg Unfunded swap
iShares MSCI Pacific ex-Japan UCITS ETF (Dist)IE00B4WXJD03 145 0.60% p.a. Distributing Ireland Full replication
UBS ETF (LU) MSCI Pacific (ex Japan) UCITS ETF (USD) A-disLU0446734526 92 0.30% p.a. Distributing Luxembourg Full replication
HSBC MSCI Pacific ex Japan UCITS ETF USDIE00B5SG8Z57 74 0.15% p.a. Distributing Ireland Full replication
L&G Asia Pacific ex Japan Equity UCITS ETFIE00BFXR5W90 54 0.10% p.a. Accumulating Ireland Optimized sampling
Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF AccIE00BK5BQZ41 25 0.15% p.a. Accumulating Ireland Full replication
Lyxor MSCI Pacific Ex Japan UCITS ETF - DistLU1220245556 15 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 3.49% 7.70% -5.81% -7.93% 3.41%
Solactive Core Developed Markets Pacific ex Japan Large & Mid Cap 4.48% 9.00% -3.62% -5.38% -
MSCI Pacific 6.14% 1.61% 1.38% -1.57% 8.33%
FTSE Developed Asia Pacific ex Japan 3.96% 10.08% -0.28% 0.02% 4.86%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI Pacific ex Japan -13.49% 20.47% -6.19% 10.60% 11.29%
Solactive Core Developed Markets Pacific ex Japan Large & Mid Cap -10.20% 21.81% - - -
MSCI Pacific -9.40% 22.15% -8.91% 8.96% 7.63%
FTSE Developed Asia Pacific ex Japan -9.33% 19.20% -10.31% 16.18% 12.08%

Source: justETF.com; As of 31.08.20; Calculations in EUR based on the largest ETF of the respective index.