Top ETFs Selfwealth Investors Buy
Selfwealth
This article covers:
What are ETFs?
Most Popular ETFs
When is the Best Time to Buy an ETF?
How to Buy or Sell on Selfwealth
What are ETFs?
An ETF is an Exchange Traded Fund.
This is a way to access a fund listed on the exchange, as opposed to an individual stock.
Historically, you had to go directly to the fund. These days you can quickly buy and sell units in a fund through your Selfwealth trading account.
ETFs can cover anything: the top 200 companies of the ASX, the biggest biotech companies, certain countries, or geographical regions. The most spoken about ETFs are the ones featuring top companies based on their market capitalisation.
Market capitalisation = the value of the company (read more about how to value shares)
Index = a list of stocks that form a group, and in this case they form the basis for a set of rules on what an ETF holds
An ETF spreads your money across all the companies in its portfolio. Therefore, you will be diversifying your money and reducing your risk. If you put all your money into one stock, and it fails, you will lose a lot of money. If you spread it across 200 companies, your risk is reduced.
Most Popular ETFs
Vanguard Diversified High Growth Index ETF
Ticker code ASX: VDHG
Why buy? Covers Australian and Global Shares
Rank #10 in all holdings of Selfwealth investors | #1 by weight across the Selfwealth community | #2 by value of all ETF holdings
This is a really popular ETF for the lazy investor. Sorry, but it's true. This is an ETF made up of ETFs!
It covers Australian shares, international shares, and fixed-interest products. The breakdown is as follows:
Vanguard Australian Shares: 36.40%
Vanguard International Shares: 26.20%
Vanguard International Shares: 15.70%
Vanguard Global Aggregate Bond: 7.20%
Vanguard International Small Companies: 6.40%
Vanguard Emerging Markets Shares: 5.00%
Vanguard Australian Fixed Interest: 3.10%
Thanks to its diversification, the Vanguard Diversified High Growth Index ETF is a real set-and-forget ETF!
BetaShares Australia 200 ETF
Ticker code ASX: A200
Why buy? Follows the top 200 companies on the ASX
Rank #9 in all holdings of Selfwealth investors | #9 by weight across the Selfwealth community | #6 by value of all ETF holdings
This fund will spread your money across the top 200 ASX-listed companies by market capitalisation.
For example, more of your money will go towards buying shares in stocks like Commonwealth Bank (ASX:CBA) and CSL (ASX: CSL) than, say, WebJet (ASX: WEB), which is closer to the bottom of the top 200. Note: the most popular ASX 200 ETF is actually the Vanguard Australian Shares Index ETF (ASX:VAS), but Australian-owned BetaShares, who manage A200, charge slightly lower management fees.
iShares S&P 500 ETF
Ticker code ASX: IVV
Why buy? Tracks the top 500 companies listed in the US
Rank #10 in all holdings of Selfwealth investors | #10 by weight across the Selfwealth community | #4 by value of all ETF holdings
The US exchanges play host to some of the biggest companies in the world. This includes companies you would know such as Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOGL), Tesla (NASDAQ: TSLA), Disney (NYSE: DIS), and the list goes on. What's more, the US market represents a large part of the global economy. It also lists a lot of international companies that are not from the US, but have a global reach. So when you're investing in companies listed on the US exchanges, don't be misled in thinking that you're placing a bet simply on the US economy.
There are many more ETFs to be found across the ASX.
And if you're looking for the latest information on what's popular across the Selfwealth community, check out the most held ETFs. You can also brush up on all the basics of ETFs.
When is the Best Time to Buy an ETF?
We would say the answer to this question is always, yesterday.
A common investing phrase says, "Time in the market is better than timing the market". Therefore, stop worrying about small things that might save you a few cents here or there, investing for a long period means you can just get in there!
How to Buy or Sell on Selfwealth
You need to fund your account in order to buy something.
Therefore, log into your account and head to the trading account settings page. From here, you can get the BSB and account number you need to transfer to, from your banking app. Selfwealth offers instant deposits.
Once your funds arrive:
Wait for the ASX market to open (10am - 4pm each day)
Search for the stock or ETF you want to buy
The 'order type' you're likely to use is "market then limit" (look below for why)
Type in the amount of money you want to invest
Submit the order! It will most likely fill instantly
You are now an investor! Congratulations!
Trying to pick a certain price and worrying about small fluctuations for long-term investors isn't worth the hassle. Market then limit buys shares or units at the current market price. Just get in there!
Important disclaimer: SelfWealth Ltd ABN 52 154 324 428 (“Selfwealth”) (AFSL 421789). The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser and/or accountant. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice. You should obtain the relevant Product Disclosure Statement for any product mentioned and consider its contents before making any decision.
