Exchange Traded Funds (ETFs)
CommSec makes it easy for you to start investing in Exchange Traded Funds (ETFs) with low
brokerage rates from just $19.95*. CommSec also offers a range of accounts including Options, CFDs,
International Trading and Margin Lending to assist you with your investment strategies using ETFs.
Exchange Traded Funds^ (ETFs) are portfolios of stocks, bonds or in some cases other investments
that trade on a stock exchange just like a share. ETFs aim to replicate the performance of a particular
index (such as the S&P/ASX 50), and are therefore made up of the same shares as the relevant index.
Exchange Traded Commodities^ (ETCs) track the physical price of a commodity such as gold to
provide direct exposure to the underlying asset.
There are a number of different types of ETFs created by various issuers. ETFs listed on the ASX offer
investors exposure to domestic and international markets, as well as commodity markets.
View types of ETFs & ETCs
How do ETFs & ETCs work?
An issuer or fund manager constructs a portfolio of shares, often to mirror the performance of an index,
such as the S&P/ASX50 index. That portfolio is then listed on the stock exchange as one entity so that it
can be traded just like ordinary shares.
ETFs have an open-ended structure, which allows units to be bought and sold as investors enter or exit
the fund. This means ETFs are traded at a unit price close to the net asset value of the underlying
portfolio. An ETF’s price is valued throughout the trading day like a share, and it can be bought or sold
with the same T+3 settlement times as shares.
ETCs track commodities, not commodity companies, allowing you to gain exposure to the physical price
of the underlying commodity without having to trade in futures or take physical delivery of the commodity.
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ETFs and ETCs are listed on the ASX and many global stock exchanges, and you can trade both through CommSec.
View ETF investment strategies
Various issuers have created different types of ETFs which are listed on the ASX to offer
investors with exposure to the domestic and international markets, as well as the commodity market.
View a list of current
ETF & ETC providers listed on the ASX.
The information on this site has been prepared without taking account of the objectives, needs, financial and
taxation situation of any particular individual. For this reason, any individual should, before acting on the
information on this site, consider the appropriateness of the information, having regards to their own objectives,
needs, financial and taxation situation, and, if necessary, seek appropriate independent financial and taxation advice.
* To be eligible for Internet Preferred trading, you must be CHESS sponsored by CommSec and settle your trades
through a CommSec Cash Account, CDIA or a CommSec or Colonial Margin Loan. Trades to $10,000 attract $19.95 brokerage.
^This website notes some features of ETFs and ETCs however is not a summary, please consider the product disclosure statement, or equivalent disclosure document, available from the product issuer before making any decision about the relevant ETF and ETC.
ETFs & ETCs offer you the opportunity to invest in an index or a commodity through an issuer. Trading ETFs with CommSec offers a range of benefits:
- Diversification
ETFs offer the opportunity for diversified exposure to stock markets as well as a range of commodities through just one transaction.
- Cost-efficiency
ETFs attract lower management fees with a typical Management Expense Ratio (MER) of less than 1%. They also offer the
opportunity to diversify your portfolio with a single transaction cost.
- Flexibility
As ETFs and ETCs are listed on the stock exchange you can buy and sell them directly through your CommSec trading account.
This means you can track the value of your investment on an intra-day basis, have the settlement certainty of T+3 and enjoy ease
of access with a low minimum initial investment of $500.
- Transparency
ETFs, particularly index funds, aim to disclose their holdings regularly, so you can see exactly what you hold in your portfolio.
View a list of current
ETF & ETC providers listed on the ASX.
The information on this site has been prepared without taking account of the objectives, needs, financial and taxation
situation of any particular individual. For this reason, any individual should, before acting on the information on this
site, consider the appropriateness of the information, having regards to their own objectives, needs, financial and taxation
situation, and, if necessary, seek appropriate independent financial and taxation advice.
This website notes some features of ETFs and ETCs however is not a summary, please consider the product disclosure statement, or equivalent disclosure document, available from the product issuer before making any decision about the relevant ETF and ETC.
Investing in ETFs can provide the same diversification as investing in many different securities individually, but
without the associated costs and inefficiency. And ETFs are valued through the trading day like a share, offering
flexibility and liquidity, with the same T+3 settlement time.
Each ETF or ETC on the ASX has a 3–6 letter code like a stock code. Simply use this code to
place trades, just as you would place a trade when buying and selling shares.
Investing in ETFs listed on the ASX
To start trading ETFs listed on the ASX, all you need is a CommSec trading account.
If you don’t already have an account, just follow the steps below to set up your CommSec trading account and start trading ETFs.
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Click on the ‘Join now’ button on the right of your screen. Setting up a CommSec trading account is simple – and free!
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Once your account is open, login with your Client ID and password and navigate to Trading. Enter the code of the ETF you
want to trade in the ‘Code’ field & click on ‘Get Quote’.
View available
ASX ETF codes.
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Once you have selected the ASX ETF code, you are now ready to trade.
Investing in ETFs listed on international share markets
CommSec also offers an International Trading account which allows you to trade ETFs listed globally.
Find out more.
ETF Costs
Brokerage rates for trading ETFs or ETCs with CommSec are the same as the standard costs that apply to your CommSec trading account.
See the brokerage costs that apply to the various CommSec accounts available.
The information on this site has been prepared without taking account of the objectives, needs, financial and taxation situation of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regards to their own objectives, needs, financial and taxation situation, and, if necessary, seek appropriate independent financial and taxation advice.
This website notes some features of ETFs and ETCs however is not a summary, please consider the product disclosure statement, or equivalent disclosure document, available from the product issuer before making any decision about the relevant ETF and ETC.