BEST 3 ETF’s Australian Market
BEST 3 ETF’s Australian Market

By PGLIVEPT | Smart Money | 4 Feb 2020


BEST 3 ETF’s Australian Market Business diversification vector concept. Do not put all your eggs in one basket. Finance balance and investment wealth illustration

BEST 3 ETF’s Australian Market

 

Best 3 ETF's Australian Market

What are the best 3 ETF’s on the Australian Market?

That’s the question of the year, what you are going to read in this post is only my personal opinion.

If you don’t know what is an ETF, please read the post below;

https://mysmartmoneytips.com/what-are-managed-funds-and-etfs/

This post is not financial advice and wasn’t paid to promote the company that will appear in this post.

In a few words, an ETF is a basket of shares, is a financial product with different shares from different companies.

ETFs

Why a ETF VS Shares from different companies?

Great question Smart Money…
The right ETF will combine a select group of stocks, shares of companies that have been performing well in the last couple of years.

Each ETF is created by a group of Financials Advisors that are studying the market daily.

But Why an ETF?

Investing in an ETF is going to be the most secure investment.

For Example:

A ETF with top 20 stocks, if one stock for a specific reason doesn’t perform well in that year at the same time you will have 19 stock that will maintain a good average performance.

Another good reason is that you don’t need to pay 20 times brokerage fees.

Sometimes ETF’s have in their holdings 3000 stocks, imagine the money that you save in fees and these two are the main reasons for choosing an ETF vs group of shares.

Therefore I’m not advising to not invest in individual stocks, because sometimes the stock that you want is not in an ETF.

eTf

Choosing ETF's

First, you will need to understand what strategy you want in your portfolio.

Please do a good research before buying your ETF, you don’t want to repeat stocks.

For example one ETF with the top 100 USA stocks and another ETF with the top 200 USA stocks, in this case, you are going to repeat the same shares, because the Top 100 are included in the Top 200.

There is a numerous amount of different ETFs in the Market and think globally.

Example: One ETF with the Top 20 USA plus Top 50 Australian stocks Plus Top 30 UK stocks.

With this ETF you will be playing in 3 different markets ( was only an example I don’t know if that ETF exist)

Another thing that you need to keep in mind, is what you want to buy.

Therefore an ETF is a Basket of different shares or sometimes products, like gold, bonds, water, mortgages, etc etc.

Vanguard ETF's in Australia

My "first love" - Vanguard

The Vanguard Group is owned by Vanguard’s U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by their investors.

In Australia, Vanguard leverages the scale, experience and resources of our established global business. Vanguard’s ownership structure means that our clients don’t have to worry that we’ll be acquired.

Investors can’t control the markets, but they can control the costs of investing on the other hand providing low-cost investments isn’t a pricing strategy for us. It’s how we do business.

Vanguard keep costs low because of Vanguard unique ownership structure in the United States that which allows return profits to investors through lower costs.

ETF

My TOP 3 Vanguard ETF's

In my personal opinion and strategy the ETF’s that I choose as the TOP 3 ETFs in the Australian Market are:

Vanguard Diversified High Growth Index Fund – VDHG

The ETF provides low-cost access to a range of sector funds, offering broad diversification across multiple asset classes.

The High Growth ETF invests mainly into growth assets therefore is designed for investors with a high tolerance for risk who are seeking long-term capital growth. 

The ETF targets a 10% allocation to income asset classes and a 90% allocation to growth asset classes.

Vanguard US Total Market Shares Index ETF – VTS

The ETF provides exposure to some of the world’s largest companies listed in the United States.

Therefore it offers low-cost access to a broadly diversified range of securities that allows investors to participate in their long-term growth potential.

Vanguard Australian Shares High Yield Fund – VHY

The ETF provides low-cost exposure to companies listed on the Australian Securities Exchange (ASX) that have higher forecast dividends relative to other ASX-listed companies.

Security diversification is achieved by restricting the proportion invested in any one industry to 40% of the total ETF and 10% for any one company.

ETF

I hope that this post was what you were looking for regarding how to choose an ETF and what are the advantages of using this type of financial product.

Please have a look at my collection of books that you must read to be a great investor, click HERE.

Please do your research before investing in any financial product, please don’t invest in nothing that people promote in any blog.
This post is only my idea, not financial advice.

Have a great day.

Best Regards

Cheers


PGLIVEPT
PGLIVEPT

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