Exchange-Traded Funds (ETFs) offer an excellent way for Australian investors to diversify their portfolios, reduce risk, and invest for the long term. This guide highlights some of the best ETFs available in Australia, categorizing them based on their focus areas and objectives.
Best ETF Australia for Long Term
Table of Contents
1. Broad Market Exposure ETFs
These ETFs provide a diversified portfolio of top-performing companies across various sectors, making them ideal for long-term investment.
| ETF Name | Index Tracked | Key Features |
|---|---|---|
| Vanguard Australian Shares Index ETF (VAS) | S&P/ASX 300 Index | Broad exposure to 300 leading Australian companies. |
| iShares Core S&P/ASX 200 ETF (IOZ) | S&P/ASX 200 Index | Invests in Australia’s top 200 companies. |
| Vanguard MSCI Index International ETF (VGS) | MSCI World ex-Australia Index | Offers exposure to global equities outside Australia. |
| SPDR S&P/ASX 200 ETF (STW) | S&P/ASX 200 Index | Established ETF for Australian market exposure. |
| iShares Global 100 ETF (IOO) | S&P Global 100 Index | Focuses on large multinational companies globally. |
2. Sector-Specific ETFs
For those interested in targeted investments, these ETFs focus on specific industries or sectors poised for growth.
| ETF Name | Sector Focus | Key Features |
|---|---|---|
| BetaShares NASDAQ 100 ETF (NDQ) | Technology | Exposure to 100 largest NASDAQ-listed tech firms. |
| BetaShares Global Cybersecurity ETF (HACK) | Cybersecurity | Invests in companies focused on cybersecurity solutions. |
| BetaShares Global Gold Miners ETF (MNRS) | Gold Mining | Exposure to leading gold mining companies worldwide. |
| BetaShares Global Agriculture ETF (FOOD) | Agriculture | Invests in agricultural production and equipment firms. |
3. Thematic ETFs
These ETFs focus on emerging trends and themes such as sustainability, robotics, and renewable energy.
| ETF Name | Theme Focus | Key Features |
|---|---|---|
| BetaShares Global Sustainability ETF (ETHI) | Sustainability | Focuses on environmentally and socially responsible companies. |
| BetaShares Global Clean Energy ETF (CLNE) | Renewable Energy | Invests in global clean energy and renewable firms. |
| BetaShares Robotics & AI ETF (RBTZ) | Robotics and Artificial Intelligence | Targets companies driving innovation in AI and robotics. |
4. Fixed Income ETFs
Ideal for investors seeking lower-risk investments and stable returns, fixed income ETFs invest in bonds and related securities.
| ETF Name | Index Tracked | Key Features |
|---|---|---|
| Vanguard Australian Government Bond ETF (VGB) | Bloomberg AusBond Government Index | Exposure to Australian government bonds. |
| iShares Core Composite Bond ETF (IAF) | Composite Bond Index | Diversified portfolio of Australian bonds. |
| Vanguard Global Aggregate Bond ETF (VBND) | Global Bond Aggregate Index | Global bonds exposure, hedged to Australian dollars. |
5. Ethical and Sustainable ETFs
For investors with ethical concerns, these ETFs focus on companies that meet environmental, social, and governance (ESG) criteria.
| ETF Name | Index Tracked | Key Features |
|---|---|---|
| Vanguard Ethically Conscious ETF (VESG) | MSCI International Ethical Index | Global equities with high ethical standards. |
| BetaShares Ethical Diversified Balanced ETF (DBBF) | Diversified Ethical Assets | Combines equities and fixed income for an ethical portfolio. |
Best ETF Australia for Long Term FAQs
- Which ETF is best for beginners in Australia?
ETFs like Vanguard Australian Shares Index ETF (VAS) and iShares Core S&P/ASX 200 ETF (IOZ) are great starting points due to their broad market exposure. - What is the minimum investment amount for ETFs?
Most ETFs can be purchased for as little as the price of one share, usually starting around $500 on Australian exchanges. - Are ETFs safe for long-term investment?
ETFs are generally considered low-risk and suitable for long-term investment, especially those that track broad market indices. - Can I invest in international ETFs from Australia?
Yes, many ETFs like Vanguard MSCI Index International ETF (VGS) offer exposure to global markets.
By choosing ETFs aligned with your investment goals, you can build a diversified and sustainable portfolio for long-term growth.