Diversified ETFs are an excellent choice for investors seeking broad exposure to multiple asset classes or market sectors. Below is a guide to some of the best diversified ETFs available in Australia, along with their key details.
Best Diversified ETF Australia
Table of Contents
1. Vanguard Diversified High Growth Index ETF (VDHG)
| Feature | Details |
|---|---|
| Description | Invests in a mix of growth and income assets. Primarily focuses on equities. |
| Asset Allocation | ~90% equities, ~10% fixed income. |
| Management Fee | 0.27% p.a. |
| Target Investors | Those seeking high growth and willing to take on more risk. |
2. iShares Core Growth Allocation ETF (AOR)
| Feature | Details |
|---|---|
| Description | Offers balanced exposure to growth and defensive assets. |
| Asset Allocation | ~70% equities, ~30% bonds. |
| Management Fee | 0.19% p.a. |
| Target Investors | Moderate-risk investors aiming for steady growth. |
3. BetaShares Diversified Balanced ETF (DBBF)
| Feature | Details |
|---|---|
| Description | Provides a mix of growth and defensive assets for balanced growth. |
| Asset Allocation | ~60% equities, ~40% bonds. |
| Management Fee | 0.26% p.a. |
| Target Investors | Investors with moderate risk tolerance. |
4. SPDR S&P/ASX 200 ETF (STW)
| Feature | Details |
|---|---|
| Description | Tracks the performance of the S&P/ASX 200 Index. |
| Asset Allocation | 100% Australian equities. |
| Management Fee | 0.13% p.a. |
| Target Investors | Those seeking Australian market exposure. |
5. Vanguard Balanced Index ETF (VDBA)
| Feature | Details |
|---|---|
| Description | A mix of growth and defensive assets with a focus on long-term returns. |
| Asset Allocation | ~50% equities, ~50% fixed income. |
| Management Fee | 0.27% p.a. |
| Target Investors | Conservative investors looking for stable returns. |
6. BetaShares Diversified High Growth ETF (DHHF)
| Feature | Details |
|---|---|
| Description | Focuses heavily on equities for maximum growth potential. |
| Asset Allocation | ~100% equities. |
| Management Fee | 0.19% p.a. |
| Target Investors | Aggressive investors targeting high returns. |
Factors to Consider When Choosing a Diversified ETF
- Investment Objective
- Choose ETFs aligned with your financial goals, such as growth, income, or stability.
- Risk Tolerance
- Understand your risk appetite. High-growth ETFs suit risk-tolerant investors, while balanced ETFs are better for conservative ones.
- Management Fees
- Opt for low-fee ETFs to maximize returns over time.
- Asset Allocation
- Ensure the ETF’s allocation matches your desired mix of equities, bonds, and other assets.
- Performance History
- Analyze the ETF’s historical returns, though past performance is not indicative of future results.
Best Diversified ETF Australia FAQs
Q1. What are diversified ETFs?
Diversified ETFs invest in a range of asset classes, sectors, or regions, offering broad exposure and reducing the risk of concentration.
Q2. Are diversified ETFs suitable for beginners?
Yes, they are ideal for beginners due to their simplicity, lower risk, and broad market exposure.
Q3. How much does it cost to invest in a diversified ETF in Australia?
The cost includes the ETF’s management fee (usually between 0.10%-0.30%) and any brokerage fees for buying or selling ETF units.
Q4. Can I invest in diversified ETFs through my superannuation?
Yes, some superannuation funds allow members to invest in ETFs as part of a self-managed or direct investment option.
Q5. What is the difference between a diversified ETF and a single-sector ETF?
Diversified ETFs invest across multiple asset classes or sectors, while single-sector ETFs focus on a specific sector or market.
Q6. Do diversified ETFs pay dividends?
Yes, many diversified ETFs distribute dividends, which may include income from equities or interest from bonds.
Investing in diversified ETFs can be a smart way to grow your wealth while managing risk. Always review the product disclosure statement (PDS) and consider consulting with a financial advisor before investing.