🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 87 (from laksa051)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa087.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs\')), getAhrefsUnparsedNoserviceFromURL(\'https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs","crawl_time":1777191109,"first_indexed_time":1580880777,"http_code":200,"src_unparsed":"au,gov,moneysmart!\/managed-funds-and-etfs\/exchange-traded-funds-etfs s443","src_root_hash":"8642081752145688487","history_drop_reason":null,"meta_title":"Exchange traded funds (ETFs) - Moneysmart.gov.au","meta_descriptions":["ETFs can be an affordable way to help you diversify. But before you invest in an ETF do your homework - know the ETF invests in and the risks."],"attrs_boilerpipe_text":"Exchange traded funds (ETFs) can be a\nlow-cost way\nto earn a return similar to an index or a commodity. \nOn this page\nHow ETFs work\nTypes of ETFs\nPros and cons of investing in ETFs\nHow to buy and sell units in ETFs\nHow ETFs work\nAn ETF is a\nthat you can buy or sell on an exchange, like the Australian Securities Exchange \nor Cboe Australia\n. They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares.\nWhen you invest in an ETF, you don't own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets.\nETF units can be created or redeemed to match investor demand. This helps the price of the units to stay close to the net asset value\nof the ETF. This differs from shares in a company or units in a Listed Investment Trust\n(LIC)\n, where the price fluctuates based on investor demand.\nThe\nASX ETF investor course\ncan help you learn more about how ETFs work.\nTypes of ETFs\nPassively managed ETFs\nIn Australia, most ETFs are\nthat don't try to outperform the market. The role of the fund manager of a passive investment is to track the value of:\nan\n, for example the\nor\na specific commodity, such as gold\nThe value of the ETF goes up or down with the index or asset they're tracking.\nActive ETFs and Hedge Funds\nExchange traded managed funds (also known as ‘Active ETFs’) and exchange traded\nhedge funds\nare\n investments. For these funds, investment managers may use high risk trading strategies to try to outperform an index.\nPhysically-backed and synthetic ETFs\nETFs can be either physically-backed or synthetic.\nPhysically-backed ETF\n– invests in all the\nin the index or a sample of the securities in the index.\nSynthetic ETF\n– hold some of the underlying assets and use\nto copy the movements of an index or asset. This type of ETF may use the word 'synthetic' in its name. Synthetic ETFs have an additional risk that the counterparty to the derivative could fail.\nWhat you can invest in through an ETF\nETFs are available for a range of\nand individual assets.\nThese include:\nAustralian shares\ninternational shares\nof the Australian or international share market, such as mining or financials\nfixed income investments like bonds\nprecious metals and commodities\nforeign currencies\ncrypto assets\ndiversified across multiple asset classes\nVisit the\nASX\nor\nCXA\nwebsites for the ETFs you can invest in.\nPros and cons of investing in ETFs\nPros\nDiversification\n– ETFs allow you to buy a basket of shares or assets in a single trade. This can help to diversify within an asset class. ETFs also allow you to invest in markets or assets it can be difficult or expensive to access. You can also diversify across ETFs so there's less chance of loss if an ETF provider collapses.\nTransparency\n– ETFs publish the net asset value (NAV) daily. This can help you track how the underlying asset are performing and if the price of the ETF is close to the NAV. Most ETFs publish the list of assets owned by the fund, so you know exactly what the ETF is invested in.\nLow cost\n– a lot of ETFs have a low management expense ratio (MER). They're usually cheaper than equivalent\n.\nEasy to trade\n– you can buy and sell ETFs during the trading hours of the exchange, through a broker. You can typically buy smaller quantities of ETF units than unlisted managed funds.\nCons\nMarket or sector risk\n– the market or sector the ETF is tracking could fall in value. For example, if the\ndeclines, the value of your ETF investment will also fall.\nCurrency risk\n– if the ETF invests in international assets, you face the risk of currency movements impacting your returns. Some ETFs are 'currency hedged' which removes this risk.\nLiquidity risk\n– some ETFs invest in assets that are not\n, such as emerging market debt. This can make it difficult at times for the ETF provider to create or redeem securities.\nTracking errors\n– an ETF's return may differ from the index or asset it's designed to track. This can be due to differences in the assets owned by the ETF and the index it is designed to track, fees, taxes and other factors. This means you could buy or sell when it's not trading at the indicative net asset value (iNAV).\nHow to buy and sell units in ETFs\nYou can buy and sell units in an ETF through a stockbroker. It's the same as\nbuying and selling shares\n. You buy and sell at the market price at the time of the trade.\nof trades takes place two business days after you buy or sell the ETF. You have to pay brokerage fees when you buy or sell an ETF.\nYou may also be able to buy and sell units in the ETF fund directly with the ETF provider. These transactions will occur at the end of the day with a price reflecting the NAV of the units.\nCompare the price and NAV or iNAV\nYou can check if an ETF is fairly priced by comparing its price on the ASX or Cboe with the NAV or the indicative or intraday NAV (iNAV).\nThe NAV is calculated by taking the assets of the fund, subtracting the liabilities and dividing this by the number of units in the fund at the end of the day. The iNAV is a real-time estimate of the NAV, published during the day.\nETF providers give updates of the NAV:\non the ASX at the end of the day\ngenerally on the ETF provider's website\nThe price to buy and sell an ETF should be close to the NAV per unit. But at times, such as on days with large changes in prices of the asset classes, the price of the ETF may move away from the NAV.\nYou can use the iNAV as a reference point during the day to understand if an ETF you're buying or selling is at, or close to, the NAV per unit. You can see the latest iNAV from your broker by adding 'Y' before the ETF ticker. For example 'YABCD' for the ETF ticker 'ABCD'.\nWhen to buy and sell ETF units\nTo get an ETF price that is more likely to represent its underlying value, place your trades at least 30 minutes after the market opens.\nIt's also better to buy or sell ETFs when the market for the underlying asset is open. For example, if you're buying or selling an ETF that tracks Asian shares, place your orders when the Asian sharemarkets are open.\nCheck the product disclosure statement before you invest\nA product disclosure statement\ncontains a lot of information you'll need to know about an ETF. It includes information on:\nwhat index, sector or asset the ETF returns aims to replicate\nthe fees and costs\nhow to buy or sell units in the ETF on market or, if allowed, directly with the ETF provider\nthe risks of investing in the ETF\nhow to complain if you have a problem with the ETF\nIf you have questions about an ETF you can contact the fund manager or get\nfinancial advice\n. You can also check recent market announcements for new information on an ETF.","attrs_markdown":"[Skip to main content](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#mainContent)\n\nmenu\n\nchevron\\_left\n\n[Home](https:\/\/moneysmart.gov.au\/)\n\nsearch\n\nclose\n\n- [Banking and budgeting](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#banking-and-budgeting)\n  - [Banking](https:\/\/moneysmart.gov.au\/banking)\n    - [Savings accounts](https:\/\/moneysmart.gov.au\/banking\/savings-accounts)\n    - [Transaction accounts and debit cards](https:\/\/moneysmart.gov.au\/banking\/transaction-accounts-and-debit-cards)\n    - [Joint accounts](https:\/\/moneysmart.gov.au\/banking\/joint-accounts)\n    - [Direct debits](https:\/\/moneysmart.gov.au\/banking\/direct-debits)\n    - [Unauthorised and mistaken transactions](https:\/\/moneysmart.gov.au\/banking\/unauthorised-and-mistaken-transactions)\n    - [Sending money overseas](https:\/\/moneysmart.gov.au\/banking\/sending-money-overseas)\n  - [Budgeting](https:\/\/moneysmart.gov.au\/budgeting)\n    - [cost of living help](https:\/\/moneysmart.gov.au\/budgeting\/cost-of-living-help)\n    - [How to do a budget](https:\/\/moneysmart.gov.au\/budgeting\/how-to-do-a-budget)\n    - [Track your spending](https:\/\/moneysmart.gov.au\/budgeting\/track-your-spending)\n    - [Manage the cost of living](https:\/\/moneysmart.gov.au\/budgeting\/manage-the-cost-of-living)\n    - [Managing on a low income](https:\/\/moneysmart.gov.au\/budgeting\/managing-on-a-low-income)\n    - [Managing on a casual income](https:\/\/moneysmart.gov.au\/budgeting\/managing-on-a-casual-income)\n    - [Budget planner](https:\/\/moneysmart.gov.au\/budgeting\/budget-planner)\n    - [Compound interest calculator](https:\/\/moneysmart.gov.au\/budgeting\/compound-interest-calculator)\n    - [Simple money manager](https:\/\/moneysmart.gov.au\/budgeting\/simple-money-manager)\n    - [Avoiding sales pressure](https:\/\/moneysmart.gov.au\/budgeting\/avoiding-sales-pressure)\n    - [Ways to save on food and fuel](https:\/\/moneysmart.gov.au\/budgeting\/ways-to-save-on-food-and-fuel)\n    - [Ways to save on energy costs](https:\/\/moneysmart.gov.au\/budgeting\/ways-to-save-on-energy-costs)\n  - [Saving](https:\/\/moneysmart.gov.au\/saving)\n    - [Savings goals calculator](https:\/\/moneysmart.gov.au\/saving\/savings-goals-calculator)\n    - [Compound interest](https:\/\/moneysmart.gov.au\/saving\/compound-interest)\n    - [Save for an emergency fund](https:\/\/moneysmart.gov.au\/saving\/save-for-an-emergency-fund)\n    - [Simple ways to save money](https:\/\/moneysmart.gov.au\/saving\/simple-ways-to-save-money)\n    - [Save for a house deposit](https:\/\/moneysmart.gov.au\/saving\/save-for-a-house-deposit)\n    - [How to start saving](https:\/\/moneysmart.gov.au\/saving\/how-to-start-saving)\n  - [Work and tax](https:\/\/moneysmart.gov.au\/work-and-tax)\n    - [GST calculator](https:\/\/moneysmart.gov.au\/work-and-tax\/gst-calculator)\n    - [Income tax calculator](https:\/\/moneysmart.gov.au\/work-and-tax\/income-tax-calculator)\n    - [Income tax](https:\/\/moneysmart.gov.au\/work-and-tax\/income-tax)\n    - [Lodging a tax return](https:\/\/moneysmart.gov.au\/work-and-tax\/lodging-a-tax-return)\n    - [Salary packaging](https:\/\/moneysmart.gov.au\/work-and-tax\/salary-packaging)\n    - [Returning to work after having a baby](https:\/\/moneysmart.gov.au\/work-and-tax\/returning-to-work-after-having-a-baby)\n    - [Losing your job](https:\/\/moneysmart.gov.au\/work-and-tax\/losing-your-job)\n    - [Self-employment](https:\/\/moneysmart.gov.au\/work-and-tax\/self-employment)\n    - [Choosing an accountant](https:\/\/moneysmart.gov.au\/work-and-tax\/choosing-an-accountant)\n  - [Family and relationships](https:\/\/moneysmart.gov.au\/family-and-relationships)\n    - [Relationships and money](https:\/\/moneysmart.gov.au\/family-and-relationships\/relationships-and-money)\n    - [Getting married](https:\/\/moneysmart.gov.au\/family-and-relationships\/getting-married)\n    - [Having a baby](https:\/\/moneysmart.gov.au\/family-and-relationships\/having-a-baby)\n    - [Teaching kids about money](https:\/\/moneysmart.gov.au\/family-and-relationships\/teaching-kids-about-money)\n    - [Getting a pet](https:\/\/moneysmart.gov.au\/family-and-relationships\/getting-a-pet)\n    - [Reducing back-to-school costs](https:\/\/moneysmart.gov.au\/family-and-relationships\/reducing-back-to-school-costs)\n    - [Cheap school holidays](https:\/\/moneysmart.gov.au\/family-and-relationships\/cheap-school-holidays)\n    - [Getting divorced or separating](https:\/\/moneysmart.gov.au\/family-and-relationships\/getting-divorced-or-separating)\n    - [Divorce and separation financial checklist](https:\/\/moneysmart.gov.au\/family-and-relationships\/divorce-and-separation-financial-checklist)\n    - [Dealing with illness](https:\/\/moneysmart.gov.au\/family-and-relationships\/dealing-with-illness)\n    - [Losing your partner](https:\/\/moneysmart.gov.au\/family-and-relationships\/losing-your-partner)\n    - [Financial abuse](https:\/\/moneysmart.gov.au\/family-and-relationships\/financial-abuse)\n    - [How to support older Australians](https:\/\/moneysmart.gov.au\/family-and-relationships\/how-to-support-older-australians)\n- [Loans, credit and debt](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#loans-credit-and-debt)\n  - [Loans](https:\/\/moneysmart.gov.au\/loans)\n    - [Going guarantor on a loan](https:\/\/moneysmart.gov.au\/loans\/going-guarantor-on-a-loan)\n    - [Car loans](https:\/\/moneysmart.gov.au\/loans\/car-loans)\n    - [Loan rejection](https:\/\/moneysmart.gov.au\/loans\/loan-rejection)\n    - [Payday loans](https:\/\/moneysmart.gov.au\/loans\/payday-loans)\n    - [No Interest Loans](https:\/\/moneysmart.gov.au\/loans\/no-interest-loans)\n    - [Personal loans](https:\/\/moneysmart.gov.au\/loans\/personal-loans)\n    - [Personal loan calculator](https:\/\/moneysmart.gov.au\/loans\/personal-loan-calculator)\n    - [Payday loan calculator](https:\/\/moneysmart.gov.au\/loans\/payday-loan-calculator)\n  - [Other ways to borrow](https:\/\/moneysmart.gov.au\/other-ways-to-borrow)\n    - [Buy now pay later services](https:\/\/moneysmart.gov.au\/other-ways-to-borrow\/buy-now-pay-later-services)\n    - [Pay advance services](https:\/\/moneysmart.gov.au\/other-ways-to-borrow\/pay-advance-services)\n    - [Interest-free deals](https:\/\/moneysmart.gov.au\/other-ways-to-borrow\/interest-free-deals)\n    - [Interest-free deal calculator](https:\/\/moneysmart.gov.au\/other-ways-to-borrow\/interest-free-deal-calculator)\n    - [Consumer leases](https:\/\/moneysmart.gov.au\/other-ways-to-borrow\/consumer-leases)\n    - [Rent vs buy calculator](https:\/\/moneysmart.gov.au\/other-ways-to-borrow\/rent-vs-buy-calculator)\n  - [Credit cards](https:\/\/moneysmart.gov.au\/credit-cards)\n    - [Choosing a credit card](https:\/\/moneysmart.gov.au\/credit-cards\/choosing-a-credit-card)\n    - [Pay off your credit card](https:\/\/moneysmart.gov.au\/credit-cards\/pay-off-your-credit-card)\n    - [Credit card calculator](https:\/\/moneysmart.gov.au\/credit-cards\/credit-card-calculator)\n    - [Credit card balance transfers](https:\/\/moneysmart.gov.au\/credit-cards\/credit-card-balance-transfers)\n    - [Cancel a credit card](https:\/\/moneysmart.gov.au\/credit-cards\/cancel-a-credit-card)\n  - [Home loans](https:\/\/moneysmart.gov.au\/home-loans)\n    - [Buying a house](https:\/\/moneysmart.gov.au\/home-loans\/buying-a-house)\n    - [Choosing a home loan](https:\/\/moneysmart.gov.au\/home-loans\/choosing-a-home-loan)\n    - [Mortgage calculator](https:\/\/moneysmart.gov.au\/home-loans\/mortgage-calculator)\n    - [Switching home loans](https:\/\/moneysmart.gov.au\/home-loans\/switching-home-loans)\n    - [Mortgage switching calculator](https:\/\/moneysmart.gov.au\/home-loans\/mortgage-switching-calculator)\n    - [Using a mortgage broker](https:\/\/moneysmart.gov.au\/home-loans\/using-a-mortgage-broker)\n    - [Pay off your mortgage faster](https:\/\/moneysmart.gov.au\/home-loans\/pay-off-your-mortgage-faster)\n    - [Problems paying your mortgage](https:\/\/moneysmart.gov.au\/home-loans\/problems-paying-your-mortgage)\n    - [Interest-only home loans](https:\/\/moneysmart.gov.au\/home-loans\/interest-only-home-loans)\n    - [Interest-only mortgage calculator](https:\/\/moneysmart.gov.au\/home-loans\/interest-only-mortgage-calculator)\n    - [Mortgage offset accounts](https:\/\/moneysmart.gov.au\/home-loans\/mortgage-offset-accounts)\n  - [Managing debt](https:\/\/moneysmart.gov.au\/managing-debt)\n    - [Get debt under control](https:\/\/moneysmart.gov.au\/managing-debt\/get-debt-under-control)\n    - [Urgent help with money](https:\/\/moneysmart.gov.au\/managing-debt\/urgent-help-with-money)\n    - [Financial counselling](https:\/\/moneysmart.gov.au\/managing-debt\/financial-counselling)\n    - [Financial hardship](https:\/\/moneysmart.gov.au\/managing-debt\/financial-hardship)\n    - [Problems paying your bills and fines](https:\/\/moneysmart.gov.au\/managing-debt\/problems-paying-your-bills-and-fines)\n    - [Credit scores and credit reports](https:\/\/moneysmart.gov.au\/managing-debt\/credit-scores-and-credit-reports)\n    - [Credit repair](https:\/\/moneysmart.gov.au\/managing-debt\/credit-repair)\n    - [Debt consolidation and refinancing](https:\/\/moneysmart.gov.au\/managing-debt\/debt-consolidation-and-refinancing)\n    - [Dealing with debt collectors](https:\/\/moneysmart.gov.au\/managing-debt\/dealing-with-debt-collectors)\n    - [Repossessed car or goods](https:\/\/moneysmart.gov.au\/managing-debt\/repossessed-car-or-goods)\n    - [Bankruptcy and debt agreements](https:\/\/moneysmart.gov.au\/managing-debt\/bankruptcy-and-debt-agreements)\n    - [Free legal advice](https:\/\/moneysmart.gov.au\/managing-debt\/free-legal-advice)\n    - [Net worth calculator](https:\/\/moneysmart.gov.au\/managing-debt\/net-worth-calculator)\n- [Investing and planning](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#investing-and-planning)\n  - [How to invest](https:\/\/moneysmart.gov.au\/how-to-invest)\n    - [Develop an investing plan](https:\/\/moneysmart.gov.au\/how-to-invest\/develop-an-investing-plan)\n    - [Choose your investments](https:\/\/moneysmart.gov.au\/how-to-invest\/choose-your-investments)\n    - [Diversification](https:\/\/moneysmart.gov.au\/how-to-invest\/diversification)\n    - [Investing and tax](https:\/\/moneysmart.gov.au\/how-to-invest\/investing-and-tax)\n    - [Borrowing to invest](https:\/\/moneysmart.gov.au\/how-to-invest\/borrowing-to-invest)\n    - [Keep track of your investments](https:\/\/moneysmart.gov.au\/how-to-invest\/keep-track-of-your-investments)\n    - [Environmental Social Governance (ESG) investing](https:\/\/moneysmart.gov.au\/how-to-invest\/environmental-social-governance-esg-investing)\n    - [Islamic finance in Australia](https:\/\/moneysmart.gov.au\/how-to-invest\/islamic-finance-in-australia)\n    - [What is private credit?](https:\/\/moneysmart.gov.au\/how-to-invest\/what-is-private-credit)\n    - [What is share market volatility](https:\/\/moneysmart.gov.au\/how-to-invest\/what-is-share-market-volatility)\n  - [Financial advice](https:\/\/moneysmart.gov.au\/financial-advice)\n    - [Financial advisers register](https:\/\/moneysmart.gov.au\/financial-advice\/financial-advisers-register)\n    - [General and personal financial advice](https:\/\/moneysmart.gov.au\/financial-advice\/general-and-personal-financial-advice)\n    - [Choosing a financial adviser](https:\/\/moneysmart.gov.au\/financial-advice\/choosing-a-financial-adviser)\n    - [Working with a financial adviser](https:\/\/moneysmart.gov.au\/financial-advice\/working-with-a-financial-adviser)\n    - [Financial advice costs](https:\/\/moneysmart.gov.au\/financial-advice\/financial-advice-costs)\n    - [Problems with a financial adviser](https:\/\/moneysmart.gov.au\/financial-advice\/problems-with-a-financial-adviser)\n  - [Shares](https:\/\/moneysmart.gov.au\/shares)\n    - [Choosing shares to buy](https:\/\/moneysmart.gov.au\/shares\/choosing-shares-to-buy)\n    - [How to buy and sell shares](https:\/\/moneysmart.gov.au\/shares\/how-to-buy-and-sell-shares)\n    - [Keeping track of your shares](https:\/\/moneysmart.gov.au\/shares\/keeping-track-of-your-shares)\n    - [Employee share schemes](https:\/\/moneysmart.gov.au\/shares\/employee-share-schemes)\n  - [Managed funds and ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs)\n    - [Managed funds fee calculator](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/managed-funds-fee-calculator)\n    - [Choosing a managed fund](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/choosing-a-managed-fund)\n    - [Exchange traded funds (ETFs)](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs)\n    - [Hedge funds](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/hedge-funds)\n    - [Listed investment companies (LICs)](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/listed-investment-companies-lics)\n    - [Peer to peer lending](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/peer-to-peer-lending)\n  - [Property investment](https:\/\/moneysmart.gov.au\/property-investment)\n    - [Property funds](https:\/\/moneysmart.gov.au\/property-investment\/property-funds)\n    - [Timeshares](https:\/\/moneysmart.gov.au\/property-investment\/timeshares)\n    - [SMSFs and property](https:\/\/moneysmart.gov.au\/property-investment\/smsfs-and-property)\n    - [Buying an investment property](https:\/\/moneysmart.gov.au\/property-investment\/buying-an-investment-property)\n  - [Investments paying interest](https:\/\/moneysmart.gov.au\/investments-paying-interest)\n    - [Bonds](https:\/\/moneysmart.gov.au\/investments-paying-interest\/bonds)\n    - [Debentures, secured and unsecured notes](https:\/\/moneysmart.gov.au\/investments-paying-interest\/debentures-secured-and-unsecured-notes)\n    - [Hybrid securities and notes](https:\/\/moneysmart.gov.au\/investments-paying-interest\/hybrid-securities-and-notes)\n    - [Term deposits](https:\/\/moneysmart.gov.au\/investments-paying-interest\/term-deposits)\n  - [Investment warnings](https:\/\/moneysmart.gov.au\/investment-warnings)\n    - [Binary options](https:\/\/moneysmart.gov.au\/investment-warnings\/binary-options)\n    - [Company director fraud](https:\/\/moneysmart.gov.au\/investment-warnings\/company-director-fraud)\n    - [Contracts for difference (CFDs)](https:\/\/moneysmart.gov.au\/investment-warnings\/contracts-for-difference-cfds)\n    - [Crypto assets](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets)\n    - [Forex trading](https:\/\/moneysmart.gov.au\/investment-warnings\/forex-trading)\n    - [Investment seminars](https:\/\/moneysmart.gov.au\/investment-warnings\/investment-seminars)\n    - [Insider trading](https:\/\/moneysmart.gov.au\/investment-warnings\/insider-trading)\n    - [Land banking](https:\/\/moneysmart.gov.au\/investment-warnings\/land-banking)\n    - [Bills of exchange](https:\/\/moneysmart.gov.au\/investment-warnings\/bills-of-exchange)\n    - [Pump and dump schemes](https:\/\/moneysmart.gov.au\/investment-warnings\/pump-and-dump-schemes)\n    - [Don't get burned by investment hype](https:\/\/moneysmart.gov.au\/investment-warnings\/don-t-get-burned-by-investment-hype)\n    - [Lead generation and how it works](https:\/\/moneysmart.gov.au\/investment-warnings\/lead-generation-and-how-it-works)\n- [Super and retirement](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#super-and-retirement)\n  - [Retirement](https:\/\/moneysmart.gov.au\/retirement)\n    - [Case study: Lillian's health scare](https:\/\/moneysmart.gov.au\/retirement\/case-study-lillian-s-health-scare)\n    - [Case study: Bill's mortgage decision](https:\/\/moneysmart.gov.au\/retirement\/case-study-bill-s-mortgage-decision)\n    - [Case study: Helen and Joe retire](https:\/\/moneysmart.gov.au\/retirement\/case-study-helen-and-joe-retire)\n    - [Retirement for First Nations people](https:\/\/moneysmart.gov.au\/retirement\/first-nations-resources)\n    - [Campaign resources](https:\/\/moneysmart.gov.au\/retirement\/campaign-resources)\n    - [Translated resources](https:\/\/moneysmart.gov.au\/retirement\/translated)\n  - [How super works](https:\/\/moneysmart.gov.au\/how-super-works)\n    - [Superannuation](https:\/\/moneysmart.gov.au\/how-super-works\/superannuation)\n    - [Choosing a super fund](https:\/\/moneysmart.gov.au\/how-super-works\/choosing-a-super-fund)\n    - [Types of super funds](https:\/\/moneysmart.gov.au\/how-super-works\/types-of-super-funds)\n    - [Self-managed super fund (SMSF)](https:\/\/moneysmart.gov.au\/how-super-works\/self-managed-super-fund-smsf)\n    - [Getting your super](https:\/\/moneysmart.gov.au\/how-super-works\/getting-your-super)\n    - [When you can access your super early](https:\/\/moneysmart.gov.au\/how-super-works\/when-you-can-access-your-super-early)\n    - [Find lost super](https:\/\/moneysmart.gov.au\/how-super-works\/find-lost-super)\n    - [Consolidating super funds](https:\/\/moneysmart.gov.au\/how-super-works\/consolidating-super-funds)\n    - [Tax and super](https:\/\/moneysmart.gov.au\/how-super-works\/tax-and-super)\n    - [Superannuation calculator](https:\/\/moneysmart.gov.au\/how-super-works\/superannuation-calculator)\n    - [Who gets your super if you die](https:\/\/moneysmart.gov.au\/how-super-works\/who-gets-your-super-if-you-die)\n    - [Claiming a super death benefit](https:\/\/moneysmart.gov.au\/how-super-works\/claiming-a-super-death-benefit)\n  - [Grow your super](https:\/\/moneysmart.gov.au\/grow-your-super)\n    - [Employer contributions calculator](https:\/\/moneysmart.gov.au\/grow-your-super\/employer-contributions-calculator)\n    - [How much super should I have](https:\/\/moneysmart.gov.au\/grow-your-super\/how-much-super-should-i-have)\n    - [Super contributions](https:\/\/moneysmart.gov.au\/grow-your-super\/super-contributions)\n    - [Downsizer super contributions](https:\/\/moneysmart.gov.au\/grow-your-super\/downsizer-super-contributions)\n    - [Super for self-employed people](https:\/\/moneysmart.gov.au\/grow-your-super\/super-for-self-employed-people)\n    - [Super investment options](https:\/\/moneysmart.gov.au\/grow-your-super\/super-investment-options)\n    - [Super contributions optimiser](https:\/\/moneysmart.gov.au\/grow-your-super\/super-contributions-optimiser)\n    - [How to check your super](https:\/\/moneysmart.gov.au\/grow-your-super\/how-to-check-your-super)\n    - [Tips to keep your retirement savings on track](https:\/\/moneysmart.gov.au\/grow-your-super\/tips-to-keep-your-retirement-savings-on-track)\n    - [Get your super working over time](https:\/\/moneysmart.gov.au\/grow-your-super\/get-your-super-working-over-time)\n  - [Plan for your retirement](https:\/\/moneysmart.gov.au\/plan-for-your-retirement)\n    - [Work out how much you need to retire](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/work-out-how-much-you-need-to-retire)\n    - [Super and pension age calculator](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/super-and-pension-age-calculator)\n    - [Make a retirement plan](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/make-a-retirement-plan)\n    - [Retirement planner](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/retirement-planner)\n    - [What happens to your super when you retire](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/what-happens-to-your-super-when-you-retire)\n    - [Managing unexpected retirement](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/managing-unexpected-retirement)\n    - [Your home in retirement](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/your-home-in-retirement)\n    - [Wills and powers of attorney](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/wills-and-powers-of-attorney)\n    - [Super and the Age Pension](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/super-and-the-age-pension)\n  - [Retirement income sources](https:\/\/moneysmart.gov.au\/retirement-income-sources)\n    - [Age Pension and government benefits](https:\/\/moneysmart.gov.au\/retirement-income-sources\/age-pension-and-government-benefits)\n    - [Account-based pensions](https:\/\/moneysmart.gov.au\/retirement-income-sources\/account-based-pensions)\n    - [Account-based pension calculator](https:\/\/moneysmart.gov.au\/retirement-income-sources\/account-based-pension-calculator)\n    - [Super lump sum](https:\/\/moneysmart.gov.au\/retirement-income-sources\/super-lump-sum)\n    - [Annuities](https:\/\/moneysmart.gov.au\/retirement-income-sources\/annuities)\n    - [Transition to retirement](https:\/\/moneysmart.gov.au\/retirement-income-sources\/transition-to-retirement)\n    - [Reverse mortgage and home equity release](https:\/\/moneysmart.gov.au\/retirement-income-sources\/reverse-mortgage-and-home-equity-release)\n    - [Reverse mortgage calculator](https:\/\/moneysmart.gov.au\/retirement-income-sources\/reverse-mortgage-calculator)\n    - [Lifetime income streams](https:\/\/moneysmart.gov.au\/retirement-income-sources\/lifetime-income-streams)\n    - [Types of retirement income](https:\/\/moneysmart.gov.au\/retirement-income-sources\/types-of-retirement-income)\n  - [Manage your money in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement)\n    - [Make your money last in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/make-your-money-last-in-retirement)\n    - [Retirement income and tax](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/retirement-income-and-tax)\n    - [Manage health costs in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/manage-health-costs-in-retirement)\n    - [Get help in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/get-help-in-retirement)\n    - [Protect your money in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/protect-your-money-in-retirement)\n    - [Downsizing in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/downsizing-in-retirement)\n    - [Aged care](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/aged-care)\n    - [Paying for your funeral](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/paying-for-your-funeral)\n    - [Memory loss, dementia and your money](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/memory-loss-dementia-and-your-money)\n- [Insurance](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#insurance)\n  - [Insurance](https:\/\/moneysmart.gov.au\/insurance)\n  - [How life insurance works](https:\/\/moneysmart.gov.au\/how-life-insurance-works)\n    - [Life insurance calculator](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/life-insurance-calculator)\n    - [Income protection insurance](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/income-protection-insurance)\n    - [Life cover](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/life-cover)\n    - [Total and permanent disability (TPD) insurance](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/total-and-permanent-disability-tpd-insurance)\n    - [Insurance through super](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/insurance-through-super)\n    - [Life insurance claims comparison tool](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/life-insurance-claims-comparison-tool)\n    - [Trauma insurance](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/trauma-insurance)\n    - [Making a life insurance claim](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/making-a-life-insurance-claim)\n  - [Car insurance](https:\/\/moneysmart.gov.au\/car-insurance)\n    - [Choosing car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/choosing-car-insurance)\n    - [Claiming on your car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/claiming-on-your-car-insurance)\n    - [No claim bonus on car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/no-claim-bonus-on-car-insurance)\n    - [Add-on car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/add-on-car-insurance)\n  - [Home insurance](https:\/\/moneysmart.gov.au\/home-insurance)\n    - [Choosing home insurance](https:\/\/moneysmart.gov.au\/home-insurance\/choosing-home-insurance)\n    - [Contents insurance](https:\/\/moneysmart.gov.au\/home-insurance\/contents-insurance)\n    - [Storm, flood and fire insurance](https:\/\/moneysmart.gov.au\/home-insurance\/storm-flood-and-fire-insurance)\n    - [How to make a home insurance claim](https:\/\/moneysmart.gov.au\/home-insurance\/how-to-make-a-home-insurance-claim)\n    - [Underinsurance: What it is and how to avoid it](https:\/\/moneysmart.gov.au\/home-insurance\/underinsurance-what-it-is-and-how-to-avoid-it)\n  - [Add-on insurance](https:\/\/moneysmart.gov.au\/add-on-insurance)\n    - [Mobile phone, tablet and laptop insurance](https:\/\/moneysmart.gov.au\/add-on-insurance\/mobile-phone-tablet-and-laptop-insurance)\n    - [Consumer credit insurance](https:\/\/moneysmart.gov.au\/add-on-insurance\/consumer-credit-insurance)\n    - [Pet insurance](https:\/\/moneysmart.gov.au\/add-on-insurance\/pet-insurance)\n  - [Other types of insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance)\n    - [Health insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance\/health-insurance)\n    - [Funeral insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance\/funeral-insurance)\n    - [Travel insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance\/travel-insurance)\n  - [Dealing with natural disasters](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters)\n    - [Preparing for a natural disaster](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/preparing-for-a-natural-disaster)\n    - [What to do after a natural disaster](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/what-to-do-after-a-natural-disaster)\n    - [Recovering from a natural disaster](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/recovering-from-a-natural-disaster)\n    - [Be aware of disaster chasers](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/be-aware-of-disaster-chasers)\n- [Scams and online safety](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#scams)\n  - [Online safety](https:\/\/moneysmart.gov.au\/online-safety)\n    - [Protect yourself from scams](https:\/\/moneysmart.gov.au\/online-safety\/protect-yourself-from-scams)\n    - [Online shopping](https:\/\/moneysmart.gov.au\/online-safety\/online-shopping)\n    - [Identity theft](https:\/\/moneysmart.gov.au\/online-safety\/identity-theft)\n    - [Using comparison websites](https:\/\/moneysmart.gov.au\/online-safety\/using-comparison-websites)\n    - [How to spot a scam website](https:\/\/moneysmart.gov.au\/online-safety\/how-to-spot-a-scam-website)\n    - [AI and money decisions](https:\/\/moneysmart.gov.au\/online-safety\/ai-and-money-decisions)\n    - [What is a finfluencer](https:\/\/moneysmart.gov.au\/online-safety\/what-is-a-finfluencer)\n  - [Financial scams](https:\/\/moneysmart.gov.au\/financial-scams)\n    - [Banking and credit scams](https:\/\/moneysmart.gov.au\/financial-scams\/banking-and-credit-scams)\n    - [Crypto scams](https:\/\/moneysmart.gov.au\/financial-scams\/crypto-scams)\n    - [Imposter bond investment scams](https:\/\/moneysmart.gov.au\/financial-scams\/imposter-bond-investment-scams)\n    - [Investment scams](https:\/\/moneysmart.gov.au\/financial-scams\/investment-scams)\n    - [Ponzi schemes](https:\/\/moneysmart.gov.au\/financial-scams\/ponzi-schemes)\n    - [Superannuation scams](https:\/\/moneysmart.gov.au\/financial-scams\/superannuation-scams)\n  - [Check and report scams](https:\/\/moneysmart.gov.au\/check-and-report-scams)\n    - [Report an investment scam](https:\/\/moneysmart.gov.au\/check-and-report-scams\/report-an-investment-scam)\n    - [Check before you invest](https:\/\/moneysmart.gov.au\/check-and-report-scams\/check-before-you-invest)\n    - [Investor alert list](https:\/\/moneysmart.gov.au\/check-and-report-scams\/investor-alert-list)\n    - [What to do if you've been scammed](https:\/\/moneysmart.gov.au\/check-and-report-scams\/what-to-do-if-you-ve-been-scammed)\n- [Community resources](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#community)\n  - [Find unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money)\n    - [Claim money from bank accounts and bank dividends](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-from-bank-accounts-and-bank-dividends)\n    - [Claim money from life insurance policies](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-from-life-insurance-policies)\n    - [Claim money from shares and investments](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-from-shares-and-investments)\n    - [Claim money owed to a deregistered company](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-owed-to-a-deregistered-company)\n    - [Proof of ownership for unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/proof-of-ownership-for-unclaimed-money)\n    - [Money held by state governments](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/money-held-by-state-governments)\n    - [Interest paid on unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/interest-paid-on-unclaimed-money)\n  - [Moneysmart for teachers](https:\/\/moneysmart.gov.au\/teaching)\n    - [Lesson plans](https:\/\/moneysmart.gov.au\/teaching\/lesson-plans)\n    - [Teaching consumer and financial literacy](https:\/\/moneysmart.gov.au\/teaching\/teaching-consumer-and-financial-literacy)\n  - [Student life and money](https:\/\/moneysmart.gov.au\/student-life-and-money)\n    - [Studying](https:\/\/moneysmart.gov.au\/student-life-and-money\/studying)\n    - [Moving out of home](https:\/\/moneysmart.gov.au\/student-life-and-money\/moving-out-of-home)\n    - [Rental bonds and leases](https:\/\/moneysmart.gov.au\/student-life-and-money\/rental-bonds-and-leases)\n    - [Getting a job](https:\/\/moneysmart.gov.au\/student-life-and-money\/getting-a-job)\n    - [Credit and debt](https:\/\/moneysmart.gov.au\/student-life-and-money\/credit-and-debt)\n    - [Choosing a mobile phone plan](https:\/\/moneysmart.gov.au\/student-life-and-money\/choosing-a-mobile-phone-plan)\n    - [Buying and running a car](https:\/\/moneysmart.gov.au\/student-life-and-money\/buying-and-running-a-car)\n  - [Publications and resources](https:\/\/moneysmart.gov.au\/publications-and-resources)\n    - [Publications](https:\/\/moneysmart.gov.au\/publications-and-resources\/publications)\n    - [Money tips in other languages](https:\/\/moneysmart.gov.au\/publications-and-resources\/money-tips-in-other-languages)\n    - [How to complain](https:\/\/moneysmart.gov.au\/publications-and-resources\/how-to-complain)\n  - [Supporting First Nations people with money matters](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters)\n    - [Book up](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/book-up)\n    - [Dealing with family pressure about money](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/dealing-with-family-pressure-about-money)\n    - [Door-to-door sales](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/door-to-door-sales)\n    - [Managing large sums of money](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/managing-large-sums-of-money)\n    - [Paying for funerals](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/paying-for-funerals)\n    - [Buying a hamper](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/buying-a-hamper)\n    - [Superannuation](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/superannuation)\n    - [How to prove your identity](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/how-to-prove-your-identity)\n    - [Bank accounts](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/bank-accounts)\n    - [Cash loans](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/cash-loans)\n    - [How insurance works](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/how-insurance-works)\n    - [How to choose insurance](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/how-to-choose-insurance)\n    - [Making an insurance claim](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/making-an-insurance-claim)\n    - [First Nations services that can help](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/first-nations-services-that-can-help)\n\n- [About us](https:\/\/moneysmart.gov.au\/about-us)\n- [Contact us](https:\/\/moneysmart.gov.au\/contact-us)\n- [Glossary](https:\/\/moneysmart.gov.au\/glossary)\n- [Media centre](https:\/\/moneysmart.gov.au\/media-centre)\n\n- [Like MoneySmart on Facebook](https:\/\/www.facebook.com\/MoneySmartAu \"Like MoneySmart on Facebook\")\n- [Subscribe to MoneySmart on Youtube](https:\/\/www.youtube.com\/user\/MoneySmartAu \"Subscribe to MoneySmart on Youtube\")\n- [Follow MoneySmart on Instagram](https:\/\/www.instagram.com\/moneysmartau\/ \"Follow MoneySmart on Instagram\")\n\n![Australian Government crest](https:\/\/static.moneysmart.gov.au\/nextgen\/img\/image-placeholder.gif)\n\n# Exchange traded funds (ETFs)\nExchange traded funds (ETFs) can be a  low-cost way to earn a return similar to an index or a commodity.\n\n- On this page\n- [How ETFs work](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#how-etfs-work \"How ETFs work\")\n- [Types of ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#types-of-etfs \"Types of ETFs\")\n- [Pros and cons of investing in ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#pros-and-cons-of-investing-in-etfs \"Pros and cons of investing in ETFs\")\n- [How to buy and sell units in ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#how-to-buy-and-sell-units-in-etfs \"How to buy and sell units in ETFs\")\n## How ETFs work\nAn ETF is a managed fund An investment fund where your money and that of other investors is pooled and used to buy [assets](https:\/\/moneysmart.gov.au\/glossary\/asset \"asset\") such as cash, [shares](https:\/\/moneysmart.gov.au\/glossary\/share \"share\"), [bonds](https:\/\/moneysmart.gov.au\/glossary\/bond \"bond\") and listed [property trusts](https:\/\/moneysmart.gov.au\/glossary\/property-trust \"property trust\"). The fund is managed by a [fund manager](https:\/\/moneysmart.gov.au\/glossary\/fund-manager \"fund manager\"). On these webpages, 'managed fund' is used when talking about managed investment schemes or [corporate collective investment vehicles](https:\/\/moneysmart.gov.au\/glossary\/corporate-collective-investment-vehicle-cciv \"Corporate Collective Investment Vehicle (CCIV)\") (CCIVs). that you can buy or sell on an exchange, like the Australian Securities Exchange (ASX) Australia’s biggest exchange, where [share](https:\/\/moneysmart.gov.au\/glossary\/share \"share\")s in public companies, [futures](https:\/\/moneysmart.gov.au\/glossary\/futures \"futures\"), [option](https:\/\/moneysmart.gov.au\/glossary\/option \"option\")s, [warrant](https:\/\/moneysmart.gov.au\/glossary\/warrant \"warrant\")s, [bond](https:\/\/moneysmart.gov.au\/glossary\/bond \"bond\")s and other securities and derivatives are traded. or Cboe Australia (CXA) Australia’s second largest securities exchange offering an alternative trading platform for Australian listed securities as well as a range of unique products including warrants and funds.. They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares.\n\nWhen you invest in an ETF, you don't own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets.\n\nETF units can be created or redeemed to match investor demand. This helps the price of the units to stay close to the net asset value (NAV) The value of assets less liabilities, often expressed as a per unit or per share value. For example, the net asset value of a [managed fund](https:\/\/moneysmart.gov.au\/glossary\/managed-fund \"managed fund\") or [exchange-traded fund](https:\/\/moneysmart.gov.au\/glossary\/exchange-traded-fund \"exchange-traded fund\") per unit would be calculated by subtracting the fund's liabilities from the fund's assets and dividing the result by the number of units on offer. of the ETF. This differs from shares in a company or units in a Listed Investment Trust [(LIC)](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/listed-investment-companies-lics \"Listed investment companies (LICs)\"), where the price fluctuates based on investor demand.\n\nThe [ASX ETF investor course](https:\/\/www2.asx.com.au\/investors\/investment-tools-and-resources\/online-courses\/etfs-course \"ASX ETF investor course\") can help you learn more about how ETFs work.\n\n## Types of ETFs\n### Passively managed ETFs\nIn Australia, most ETFs are passive investments A 'buy and hold' investment management approach where a fund manager holds a portfolio of assets aimed at generating a return before fees similar to the index it is tracking, such as the ASX All Ordinaries Index or the ASX200 Index. (Also known as an index fund.) that don't try to outperform the market. The role of the fund manager of a passive investment is to track the value of:\n\n- an\n  index\n  \n  A statistical measure of change in the value of a market, asset class or industry sector. The value of an index increases or decreases with changes in the value of the underlying security or sector it's measuring. For example, the ASX All Ordinaries Index measures the change in the overall value of 500 largest companies by market capitalisation listed on the Australian Securities Exchange.\n  , for example the\n  ASX200\n  \n  The ASX200 is a stock market index that measures the performance of 200 largest companies, by market capitalisation, listed on the Australian Securities Exchange.\n  or\n  S\\&P500\n  \n  The S\\&P500 is a stock market index that measures the performance of 500 largest companies, by market capitalisation, listed on exchanges in the United States.\n- a specific commodity, such as gold\n\nThe value of the ETF goes up or down with the index or asset they're tracking.\n\n### Active ETFs and Hedge Funds\nExchange traded managed funds (also known as ‘Active ETFs’) and exchange traded [hedge funds](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/hedge-funds \"Hedge funds\") are actively managed An investment management approach where a fund manager buys and sells investments regularly in an effort to outperform a specific market index, such as the ASX200. investments. For these funds, investment managers may use high risk trading strategies to try to outperform an index.\n\n### Physically-backed and synthetic ETFs\nETFs can be either physically-backed or synthetic.\n\n- **Physically-backed ETF** – invests in all the\n  securities\n  \n  In relation to financial [asset](https:\/\/moneysmart.gov.au\/glossary\/asset \"asset\")s, a security is an [investment](https:\/\/moneysmart.gov.au\/glossary\/investment \"investment\") such as [share](https:\/\/moneysmart.gov.au\/glossary\/share \"share\")s or [bond](https:\/\/moneysmart.gov.au\/glossary\/bond \"bond\")s which can be traded in financial markets.\n  in the index or a sample of the securities in the index.\n- **Synthetic ETF** – hold some of the underlying assets and use\n  derivatives\n  \n  A financial instrument whose value is 'derived' from an underlying asset such as a share, commodity or index. Common types of derivatives include [option](https:\/\/moneysmart.gov.au\/glossary\/option \"option\")s and [futures](https:\/\/moneysmart.gov.au\/glossary\/futures \"futures\") contracts.\n  to copy the movements of an index or asset. This type of ETF may use the word 'synthetic' in its name. Synthetic ETFs have an additional risk that the counterparty to the derivative could fail.\n### What you can invest in through an ETF\nETFs are available for a range of asset classes A category of investments with similar characteristics and market behaviours. Examples include cash, fixed interest, property and shares. and individual assets.\n\nThese include:\n\n- Australian shares\n- international shares\n- sectors\n  \n  A classification used to group companies that are related in terms of their primary business activities. Major industry sectors include consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, metals and mining, telecommunications and utilities.\n  of the Australian or international share market, such as mining or financials\n- fixed income investments like bonds\n- precious metals and commodities\n- foreign currencies\n- crypto assets\n- diversified across multiple asset classes\n\nVisit the [ASX](https:\/\/www.asx.com.au\/issuers\/investment-products\/product-options \"ASX product options\") or [CXA](https:\/\/www.cboe.com.au\/funds \"Cboe funds list\") websites for the ETFs you can invest in.\n\n## Pros and cons of investing in ETFs\n### Pros\n- **Diversification** – ETFs allow you to buy a basket of shares or assets in a single trade. This can help to diversify within an asset class. ETFs also allow you to invest in markets or assets it can be difficult or expensive to access. You can also diversify across ETFs so there's less chance of loss if an ETF provider collapses.\n- **Transparency** – ETFs publish the net asset value (NAV) daily. This can help you track how the underlying asset are performing and if the price of the ETF is close to the NAV. Most ETFs publish the list of assets owned by the fund, so you know exactly what the ETF is invested in.\n- **Low cost** – a lot of ETFs have a low management expense ratio (MER). They're usually cheaper than equivalent\n  managed funds\n  \n  An investment management approach where a fund manager buys and sells investments regularly in an effort to outperform a specific market index, such as the ASX200.\n  .\n- **Easy to trade** – you can buy and sell ETFs during the trading hours of the exchange, through a broker. You can typically buy smaller quantities of ETF units than unlisted managed funds.\n### Cons\n- **Market or sector risk** – the market or sector the ETF is tracking could fall in value. For example, if the\n  ASX200\n  \n  The ASX200 is a stock market index that measures the performance of 200 largest companies, by market capitalisation, listed on the Australian Securities Exchange.\n  declines, the value of your ETF investment will also fall.\n- **Currency risk** – if the ETF invests in international assets, you face the risk of currency movements impacting your returns. Some ETFs are 'currency hedged' which removes this risk.\n- **Liquidity risk** – some ETFs invest in assets that are not\n  liquid\n  \n  How easily an investment or financial product can be converted to cash. Shares in large publicly listed companies that are regularly traded on the [ASX](https:\/\/moneysmart.gov.au\/glossary\/australian-securities-exchange-asx \"Australian Securities Exchange (ASX)\") (Australian Securities Exchange) are considered liquid assets, while direct property investments are less liquid, due to difficulties and time delays that may be experienced when buying and selling. Liquid markets have enough trading activity to allow both buyers and sellers to easily transact as they wish.\n  , such as emerging market debt. This can make it difficult at times for the ETF provider to create or redeem securities.\n- **Tracking errors** – an ETF's return may differ from the index or asset it's designed to track. This can be due to differences in the assets owned by the ETF and the index it is designed to track, fees, taxes and other factors. This means you could buy or sell when it's not trading at the indicative net asset value (iNAV).\n## How to buy and sell units in ETFs\nYou can buy and sell units in an ETF through a stockbroker. It's the same as [buying and selling shares](https:\/\/moneysmart.gov.au\/shares\/how-to-buy-and-sell-shares \"How to buy and sell shares\"). You buy and sell at the market price at the time of the trade.\n\nSettlement When the title or legal ownership of a financial product, such as shares or ETFs, is exchanged for money. A broker, or an agent of the broker, handles settlement. of trades takes place two business days after you buy or sell the ETF. You have to pay brokerage fees when you buy or sell an ETF.\n\nYou may also be able to buy and sell units in the ETF fund directly with the ETF provider. These transactions will occur at the end of the day with a price reflecting the NAV of the units.\n\n### Compare the price and NAV or iNAV\nYou can check if an ETF is fairly priced by comparing its price on the ASX or Cboe with the NAV or the indicative or intraday NAV (iNAV).\n\nThe NAV is calculated by taking the assets of the fund, subtracting the liabilities and dividing this by the number of units in the fund at the end of the day. The iNAV is a real-time estimate of the NAV, published during the day.\n\nETF providers give updates of the NAV:\n\n- on the ASX at the end of the day\n- generally on the ETF provider's website\n\nThe price to buy and sell an ETF should be close to the NAV per unit. But at times, such as on days with large changes in prices of the asset classes, the price of the ETF may move away from the NAV.\n\nYou can use the iNAV as a reference point during the day to understand if an ETF you're buying or selling is at, or close to, the NAV per unit. You can see the latest iNAV from your broker by adding 'Y' before the ETF ticker. For example 'YABCD' for the ETF ticker 'ABCD'.\n\n### When to buy and sell ETF units\nTo get an ETF price that is more likely to represent its underlying value, place your trades at least 30 minutes after the market opens.\n\nIt's also better to buy or sell ETFs when the market for the underlying asset is open. For example, if you're buying or selling an ETF that tracks Asian shares, place your orders when the Asian sharemarkets are open.\n\n### Check the product disclosure statement before you invest\nA product disclosure statement (PDS) A document that financial service providers must provide to you when they recommend or offer a financial product. It must include information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure. contains a lot of information you'll need to know about an ETF. It includes information on:\n\n- what index, sector or asset the ETF returns aims to replicate\n- the fees and costs\n- how to buy or sell units in the ETF on market or, if allowed, directly with the ETF provider\n- the risks of investing in the ETF\n- how to complain if you have a problem with the ETF\n\nIf you have questions about an ETF you can contact the fund manager or get [financial advice](https:\/\/moneysmart.gov.au\/financial-advice \"Financial advice\"). You can also check recent market announcements for new information on an ETF.\n\n[1How ETFs work](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#how-etfs-work)\n\n[2Types of ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#types-of-etfs)\n\n[3Pros and cons of investing in ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#pros-and-cons-of-investing-in-etfs)\n\n[4How to buy and sell units in ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#how-to-buy-and-sell-units-in-etfs)\n\nDo you find this page useful?\n\nYes\n\nNo\n\nWhy?\n\nIt had the information I was looking for\n\nThe page makes sense\n\nThe information is balanced and unbiased\n\nThe information gave me a sense of what to do next\n\nSubmit\n\nAny other feedback\n\nWhy not?\n\nIt didn't have the information I was looking for\n\nThe page was confusing\n\nThe information overwhelmed me\n\nThere wasn't enough information for me to take action\n\nSubmit\n\nAny other feedback\n\nYour feedback\n\nYour feedback relates to:\n\nYou would like to:\n\nYour issue is:\n\n- **Calculator disclaimers and assumptions** can be found under each calculator. Refer to these for more detailed information about how a specific calculator works.\n- **Calculator frequently asked questions** can be found under most calculators. Refer to these for more information.\n\nThe links below provide more information on complaints and reporting scams:\n\n- [Complain about a financial product or service](https:\/\/moneysmart.gov.au\/how-to-complain \"How to complain\")\n- [Report a scam](https:\/\/moneysmart.gov.au\/check-and-report-scams\/what-to-do-if-you-ve-been-scammed \"Report a scam\")\n- [Report misconduct to ASIC](https:\/\/asic.gov.au\/about-asic\/contact-us\/how-to-complain\/ \"ASIC - how to complain\")\n\nWe don't lend money, arrange loans or provide personal financial advice.\n\nIf you are experiencing difficulties with money, the following pages can help:\n\n- [Urgent help with money](https:\/\/moneysmart.gov.au\/managing-debt\/urgent-help-with-money \"Urgent help with money\")\n- [No or low interest loans](https:\/\/moneysmart.gov.au\/loans\/no-interest-loans \"No or low interest loans\")\n- [Problems paying your bills or fines](https:\/\/moneysmart.gov.au\/managing-debt\/problems-paying-your-bills-and-fines \"Problems paying your bills and fines\")\n- [Problems paying your mortgage](https:\/\/moneysmart.gov.au\/home-loans\/problems-paying-your-mortgage \"Problems paying your mortgage\")\n- [Find a financial counsellor](https:\/\/moneysmart.gov.au\/managing-debt\/financial-counselling \"Financial counselling\")\n\nSummary of your feedback:\n\nYour comments:\n\nThe page\/calculator\/app you are referring to (eg. cut\/paste URL):\n\nCancel\n\nSend feedback\n\n## Up next in Managed funds and ETFs\narrow\\_backMove left\n\narrow\\_forwardMove right\n\n- [Managed funds fee calculator This calculator helps you check how fees and costs can affect your investment 10 min read](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/managed-funds-fee-calculator)\n- [Choosing a managed fund We explain the types of managed funds you can invest in and what to look for to find a managed fund that suits you 8 min read](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/choosing-a-managed-fund)\n- [Hedge funds Hedge funds use investment strategies that are more complex than other managed funds. Learn how they work 4 min read](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/hedge-funds)\n- [Listed investment companies (LICs) Decide whether a listed investment company or trust is right for you 3 min read](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/listed-investment-companies-lics)\n- [Peer to peer lending Decide whether investing via peer to peer lending is right for you 4 min read](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/peer-to-peer-lending)\n\n- ![](https:\/\/download.asic.gov.au\/asic-nextgen\/img\/djooroot_moort_perterfarmer_artwork.png)\n  \n  Djooroot Moort by  \n  Peter Farmer\n  \n  Acknowledgement of Country\n  \n  ASIC acknowledges the Traditional Owners of the lands and waters on which we live and work. We pay respect to Elders past and present as the custodians of the world's oldest continuing cultures.\n\n- Moneysmart\n- [About us](https:\/\/moneysmart.gov.au\/about-us \"About us\")\n- [Contact us](https:\/\/moneysmart.gov.au\/contact-us \"Contact us\")\n- [Glossary](https:\/\/moneysmart.gov.au\/glossary \"Glossary\")\n- [Media centre](https:\/\/moneysmart.gov.au\/media-centre \"Media centre\")\n- [Subscribe](https:\/\/moneysmart.gov.au\/subscribe-to-our-newsletter \"Subscribe\")\n\n- Social\n- [Instagram](https:\/\/www.instagram.com\/moneysmartau\/ \"Follow MoneySmart on Instagram\")\n- [Facebook](https:\/\/www.facebook.com\/MoneySmartAu \"Like MoneySmart on Facebook\")\n- [Youtube](https:\/\/www.youtube.com\/user\/MoneySmartAu \"Subscribe to MoneySmart on Youtube\")\n\nsearch\n\nPopular content\n\n[Find unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money)\n\n[Mortgage calculator](https:\/\/moneysmart.gov.au\/home-loans\/mortgage-calculator)\n\n[Budget planner](https:\/\/moneysmart.gov.au\/budgeting\/budget-planner)\n\n[How super works](https:\/\/moneysmart.gov.au\/how-super-works)\n\n[Banking and credit scams](https:\/\/moneysmart.gov.au\/banking\/banking-and-credit-scams)\n\n[How to invest](https:\/\/moneysmart.gov.au\/how-to-invest)\n\n[Financial advisers register](https:\/\/moneysmart.gov.au\/financial-advice\/financial-advisers-register)\n\nRecently visited","attrs_readable_markdown":"Exchange traded funds (ETFs) can be a  low-cost way to earn a return similar to an index or a commodity.\n\n- On this page\n- [How ETFs work](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#how-etfs-work \"How ETFs work\")\n- [Types of ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#types-of-etfs \"Types of ETFs\")\n- [Pros and cons of investing in ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#pros-and-cons-of-investing-in-etfs \"Pros and cons of investing in ETFs\")\n- [How to buy and sell units in ETFs](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs#how-to-buy-and-sell-units-in-etfs \"How to buy and sell units in ETFs\")\n## How ETFs work\nAn ETF is a  that you can buy or sell on an exchange, like the Australian Securities Exchange  or Cboe Australia . They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares.\n\nWhen you invest in an ETF, you don't own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets.\n\nETF units can be created or redeemed to match investor demand. This helps the price of the units to stay close to the net asset value  of the ETF. This differs from shares in a company or units in a Listed Investment Trust [(LIC)](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/listed-investment-companies-lics \"Listed investment companies (LICs)\"), where the price fluctuates based on investor demand.\n\nThe [ASX ETF investor course](https:\/\/www2.asx.com.au\/investors\/investment-tools-and-resources\/online-courses\/etfs-course \"ASX ETF investor course\") can help you learn more about how ETFs work.\n\n## Types of ETFs\n### Passively managed ETFs\nIn Australia, most ETFs are  that don't try to outperform the market. The role of the fund manager of a passive investment is to track the value of:\n\n- an , for example the  or\n- a specific commodity, such as gold\n\nThe value of the ETF goes up or down with the index or asset they're tracking.\n\n### Active ETFs and Hedge Funds\nExchange traded managed funds (also known as ‘Active ETFs’) and exchange traded [hedge funds](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/hedge-funds \"Hedge funds\") are  investments. For these funds, investment managers may use high risk trading strategies to try to outperform an index.\n\n### Physically-backed and synthetic ETFs\nETFs can be either physically-backed or synthetic.\n\n- **Physically-backed ETF** – invests in all the  in the index or a sample of the securities in the index.\n- **Synthetic ETF** – hold some of the underlying assets and use  to copy the movements of an index or asset. This type of ETF may use the word 'synthetic' in its name. Synthetic ETFs have an additional risk that the counterparty to the derivative could fail.\n### What you can invest in through an ETF\nETFs are available for a range of  and individual assets.\n\nThese include:\n\n- Australian shares\n- international shares\n- of the Australian or international share market, such as mining or financials\n- fixed income investments like bonds\n- precious metals and commodities\n- foreign currencies\n- crypto assets\n- diversified across multiple asset classes\n\nVisit the [ASX](https:\/\/www.asx.com.au\/issuers\/investment-products\/product-options \"ASX product options\") or [CXA](https:\/\/www.cboe.com.au\/funds \"Cboe funds list\") websites for the ETFs you can invest in.\n\n## Pros and cons of investing in ETFs\n### Pros\n- **Diversification** – ETFs allow you to buy a basket of shares or assets in a single trade. This can help to diversify within an asset class. ETFs also allow you to invest in markets or assets it can be difficult or expensive to access. You can also diversify across ETFs so there's less chance of loss if an ETF provider collapses.\n- **Transparency** – ETFs publish the net asset value (NAV) daily. This can help you track how the underlying asset are performing and if the price of the ETF is close to the NAV. Most ETFs publish the list of assets owned by the fund, so you know exactly what the ETF is invested in.\n- **Low cost** – a lot of ETFs have a low management expense ratio (MER). They're usually cheaper than equivalent .\n- **Easy to trade** – you can buy and sell ETFs during the trading hours of the exchange, through a broker. You can typically buy smaller quantities of ETF units than unlisted managed funds.\n### Cons\n- **Market or sector risk** – the market or sector the ETF is tracking could fall in value. For example, if the  declines, the value of your ETF investment will also fall.\n- **Currency risk** – if the ETF invests in international assets, you face the risk of currency movements impacting your returns. Some ETFs are 'currency hedged' which removes this risk.\n- **Liquidity risk** – some ETFs invest in assets that are not , such as emerging market debt. This can make it difficult at times for the ETF provider to create or redeem securities.\n- **Tracking errors** – an ETF's return may differ from the index or asset it's designed to track. This can be due to differences in the assets owned by the ETF and the index it is designed to track, fees, taxes and other factors. This means you could buy or sell when it's not trading at the indicative net asset value (iNAV).\n## How to buy and sell units in ETFs\nYou can buy and sell units in an ETF through a stockbroker. It's the same as [buying and selling shares](https:\/\/moneysmart.gov.au\/shares\/how-to-buy-and-sell-shares \"How to buy and sell shares\"). You buy and sell at the market price at the time of the trade.\n\nof trades takes place two business days after you buy or sell the ETF. You have to pay brokerage fees when you buy or sell an ETF.\n\nYou may also be able to buy and sell units in the ETF fund directly with the ETF provider. These transactions will occur at the end of the day with a price reflecting the NAV of the units.\n\n### Compare the price and NAV or iNAV\nYou can check if an ETF is fairly priced by comparing its price on the ASX or Cboe with the NAV or the indicative or intraday NAV (iNAV).\n\nThe NAV is calculated by taking the assets of the fund, subtracting the liabilities and dividing this by the number of units in the fund at the end of the day. The iNAV is a real-time estimate of the NAV, published during the day.\n\nETF providers give updates of the NAV:\n\n- on the ASX at the end of the day\n- generally on the ETF provider's website\n\nThe price to buy and sell an ETF should be close to the NAV per unit. But at times, such as on days with large changes in prices of the asset classes, the price of the ETF may move away from the NAV.\n\nYou can use the iNAV as a reference point during the day to understand if an ETF you're buying or selling is at, or close to, the NAV per unit. You can see the latest iNAV from your broker by adding 'Y' before the ETF ticker. For example 'YABCD' for the ETF ticker 'ABCD'.\n\n### When to buy and sell ETF units\nTo get an ETF price that is more likely to represent its underlying value, place your trades at least 30 minutes after the market opens.\n\nIt's also better to buy or sell ETFs when the market for the underlying asset is open. For example, if you're buying or selling an ETF that tracks Asian shares, place your orders when the Asian sharemarkets are open.\n\n### Check the product disclosure statement before you invest\nA product disclosure statement  contains a lot of information you'll need to know about an ETF. It includes information on:\n\n- what index, sector or asset the ETF returns aims to replicate\n- the fees and costs\n- how to buy or sell units in the ETF on market or, if allowed, directly with the ETF provider\n- the risks of investing in the ETF\n- how to complain if you have a problem with the ETF\n\nIf you have questions about an ETF you can contact the fund manager or get [financial advice](https:\/\/moneysmart.gov.au\/financial-advice \"Financial advice\"). You can also check recent market announcements for new information on an ETF.","meta_canonical":null,"ml_categories_json":"{\"\/Finance\":998,\"\/Finance\/Investing\":997,\"\/Finance\/Investing\/Funds\":922}","ml_types_json":"{\"\/Article\":986,\"\/Article\/Tutorial_or_Guide\":581}","ml_intent_types_json":"{\"Informational\":999}","meta_language":"en","attrs_author":null,"attrs_publish_time":0,"attrs_original_publish_time":1580880777,"attrs_is_republished":0,"attrs_nr_words":"3576","attrs_boilerpipe_nr_words":"1252","body_ext_links_number":15,"body_int_links_number":341,"meta_nofollow":0,"meta_noarchive":0,"props_was_rendered":1,"src_redirect":"","download_time_msec":881,"download_ttfb_msec":511,"download_size":15492}

3. Robots.txt Check

Query:

Response:

4. Spam/Ban Check

Query:

Response:

5. Seen Status Check

ℹ️ Skipped - page is already crawled

📄

INDEXABLE

✅

CRAWLED

9 hours ago

🤖

ROBOTS ALLOWED

Page Info Filters

Filter	Status	Condition	Details
HTTP status	PASS	`download_http_code = 200`	HTTP 200
Age cutoff	PASS	`download_stamp > now() - 6 MONTH`	0 months ago
History drop	PASS	`isNull(history_drop_reason)`	No drop reason
Spam/ban	PASS	`fh_dont_index != 1 AND ml_spam_score = 0`	ml_spam_score=0
Canonical	PASS	`meta_canonical IS NULL OR = '' OR = src_unparsed`	Not set

Page Details

Property

Value

URL

https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs

Last Crawled

2026-04-26 08:11:49 (9 hours ago)

First Indexed

2020-02-05 05:32:57 (6 years ago)

HTTP Status Code

200

Content

Meta Title

Exchange traded funds (ETFs) - Moneysmart.gov.au

Meta Description

ETFs can be an affordable way to help you diversify. But before you invest in an ETF do your homework - know the ETF invests in and the risks.

Meta Canonical

null

Boilerpipe Text

Exchange traded funds (ETFs) can be a low-cost way to earn a return similar to an index or a commodity. On this page How ETFs work Types of ETFs Pros and cons of investing in ETFs How to buy and sell units in ETFs How ETFs work An ETF is a that you can buy or sell on an exchange, like the Australian Securities Exchange or Cboe Australia . They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares. When you invest in an ETF, you don't own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets. ETF units can be created or redeemed to match investor demand. This helps the price of the units to stay close to the net asset value of the ETF. This differs from shares in a company or units in a Listed Investment Trust (LIC) , where the price fluctuates based on investor demand. The ASX ETF investor course can help you learn more about how ETFs work. Types of ETFs Passively managed ETFs In Australia, most ETFs are that don't try to outperform the market. The role of the fund manager of a passive investment is to track the value of: an , for example the or a specific commodity, such as gold The value of the ETF goes up or down with the index or asset they're tracking. Active ETFs and Hedge Funds Exchange traded managed funds (also known as ‘Active ETFs’) and exchange traded hedge funds are investments. For these funds, investment managers may use high risk trading strategies to try to outperform an index. Physically-backed and synthetic ETFs ETFs can be either physically-backed or synthetic. Physically-backed ETF – invests in all the in the index or a sample of the securities in the index. Synthetic ETF – hold some of the underlying assets and use to copy the movements of an index or asset. This type of ETF may use the word 'synthetic' in its name. Synthetic ETFs have an additional risk that the counterparty to the derivative could fail. What you can invest in through an ETF ETFs are available for a range of and individual assets. These include: Australian shares international shares of the Australian or international share market, such as mining or financials fixed income investments like bonds precious metals and commodities foreign currencies crypto assets diversified across multiple asset classes Visit the ASX or CXA websites for the ETFs you can invest in. Pros and cons of investing in ETFs Pros Diversification – ETFs allow you to buy a basket of shares or assets in a single trade. This can help to diversify within an asset class. ETFs also allow you to invest in markets or assets it can be difficult or expensive to access. You can also diversify across ETFs so there's less chance of loss if an ETF provider collapses. Transparency – ETFs publish the net asset value (NAV) daily. This can help you track how the underlying asset are performing and if the price of the ETF is close to the NAV. Most ETFs publish the list of assets owned by the fund, so you know exactly what the ETF is invested in. Low cost – a lot of ETFs have a low management expense ratio (MER). They're usually cheaper than equivalent . Easy to trade – you can buy and sell ETFs during the trading hours of the exchange, through a broker. You can typically buy smaller quantities of ETF units than unlisted managed funds. Cons Market or sector risk – the market or sector the ETF is tracking could fall in value. For example, if the declines, the value of your ETF investment will also fall. Currency risk – if the ETF invests in international assets, you face the risk of currency movements impacting your returns. Some ETFs are 'currency hedged' which removes this risk. Liquidity risk – some ETFs invest in assets that are not , such as emerging market debt. This can make it difficult at times for the ETF provider to create or redeem securities. Tracking errors – an ETF's return may differ from the index or asset it's designed to track. This can be due to differences in the assets owned by the ETF and the index it is designed to track, fees, taxes and other factors. This means you could buy or sell when it's not trading at the indicative net asset value (iNAV). How to buy and sell units in ETFs You can buy and sell units in an ETF through a stockbroker. It's the same as buying and selling shares . You buy and sell at the market price at the time of the trade. of trades takes place two business days after you buy or sell the ETF. You have to pay brokerage fees when you buy or sell an ETF. You may also be able to buy and sell units in the ETF fund directly with the ETF provider. These transactions will occur at the end of the day with a price reflecting the NAV of the units. Compare the price and NAV or iNAV You can check if an ETF is fairly priced by comparing its price on the ASX or Cboe with the NAV or the indicative or intraday NAV (iNAV). The NAV is calculated by taking the assets of the fund, subtracting the liabilities and dividing this by the number of units in the fund at the end of the day. The iNAV is a real-time estimate of the NAV, published during the day. ETF providers give updates of the NAV: on the ASX at the end of the day generally on the ETF provider's website The price to buy and sell an ETF should be close to the NAV per unit. But at times, such as on days with large changes in prices of the asset classes, the price of the ETF may move away from the NAV. You can use the iNAV as a reference point during the day to understand if an ETF you're buying or selling is at, or close to, the NAV per unit. You can see the latest iNAV from your broker by adding 'Y' before the ETF ticker. For example 'YABCD' for the ETF ticker 'ABCD'. When to buy and sell ETF units To get an ETF price that is more likely to represent its underlying value, place your trades at least 30 minutes after the market opens. It's also better to buy or sell ETFs when the market for the underlying asset is open. For example, if you're buying or selling an ETF that tracks Asian shares, place your orders when the Asian sharemarkets are open. Check the product disclosure statement before you invest A product disclosure statement contains a lot of information you'll need to know about an ETF. It includes information on: what index, sector or asset the ETF returns aims to replicate the fees and costs how to buy or sell units in the ETF on market or, if allowed, directly with the ETF provider the risks of investing in the ETF how to complain if you have a problem with the ETF If you have questions about an ETF you can contact the fund manager or get financial advice . You can also check recent market announcements for new information on an ETF.

Markdown

[Skip to main content](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#mainContent) menu chevron\_left [Home](https://moneysmart.gov.au/) search close - [Banking and budgeting](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#banking-and-budgeting) - [Banking](https://moneysmart.gov.au/banking) - [Savings accounts](https://moneysmart.gov.au/banking/savings-accounts) - [Transaction accounts and debit cards](https://moneysmart.gov.au/banking/transaction-accounts-and-debit-cards) - [Joint accounts](https://moneysmart.gov.au/banking/joint-accounts) - [Direct debits](https://moneysmart.gov.au/banking/direct-debits) - [Unauthorised and mistaken transactions](https://moneysmart.gov.au/banking/unauthorised-and-mistaken-transactions) - [Sending money overseas](https://moneysmart.gov.au/banking/sending-money-overseas) - [Budgeting](https://moneysmart.gov.au/budgeting) - [cost of living help](https://moneysmart.gov.au/budgeting/cost-of-living-help) - [How to do a budget](https://moneysmart.gov.au/budgeting/how-to-do-a-budget) - [Track your spending](https://moneysmart.gov.au/budgeting/track-your-spending) - [Manage the cost of living](https://moneysmart.gov.au/budgeting/manage-the-cost-of-living) - [Managing on a low income](https://moneysmart.gov.au/budgeting/managing-on-a-low-income) - [Managing on a casual income](https://moneysmart.gov.au/budgeting/managing-on-a-casual-income) - [Budget planner](https://moneysmart.gov.au/budgeting/budget-planner) - [Compound interest calculator](https://moneysmart.gov.au/budgeting/compound-interest-calculator) - [Simple money manager](https://moneysmart.gov.au/budgeting/simple-money-manager) - [Avoiding sales pressure](https://moneysmart.gov.au/budgeting/avoiding-sales-pressure) - [Ways to save on food and fuel](https://moneysmart.gov.au/budgeting/ways-to-save-on-food-and-fuel) - [Ways to save on energy costs](https://moneysmart.gov.au/budgeting/ways-to-save-on-energy-costs) - [Saving](https://moneysmart.gov.au/saving) - [Savings goals calculator](https://moneysmart.gov.au/saving/savings-goals-calculator) - [Compound interest](https://moneysmart.gov.au/saving/compound-interest) - [Save for an emergency fund](https://moneysmart.gov.au/saving/save-for-an-emergency-fund) - [Simple ways to save money](https://moneysmart.gov.au/saving/simple-ways-to-save-money) - [Save for a house deposit](https://moneysmart.gov.au/saving/save-for-a-house-deposit) - [How to start saving](https://moneysmart.gov.au/saving/how-to-start-saving) - [Work and tax](https://moneysmart.gov.au/work-and-tax) - [GST calculator](https://moneysmart.gov.au/work-and-tax/gst-calculator) - [Income tax calculator](https://moneysmart.gov.au/work-and-tax/income-tax-calculator) - [Income tax](https://moneysmart.gov.au/work-and-tax/income-tax) - [Lodging a tax return](https://moneysmart.gov.au/work-and-tax/lodging-a-tax-return) - [Salary packaging](https://moneysmart.gov.au/work-and-tax/salary-packaging) - [Returning to work after having a baby](https://moneysmart.gov.au/work-and-tax/returning-to-work-after-having-a-baby) - [Losing your job](https://moneysmart.gov.au/work-and-tax/losing-your-job) - [Self-employment](https://moneysmart.gov.au/work-and-tax/self-employment) - [Choosing an accountant](https://moneysmart.gov.au/work-and-tax/choosing-an-accountant) - [Family and relationships](https://moneysmart.gov.au/family-and-relationships) - [Relationships and money](https://moneysmart.gov.au/family-and-relationships/relationships-and-money) - [Getting married](https://moneysmart.gov.au/family-and-relationships/getting-married) - [Having a baby](https://moneysmart.gov.au/family-and-relationships/having-a-baby) - [Teaching kids about money](https://moneysmart.gov.au/family-and-relationships/teaching-kids-about-money) - [Getting a pet](https://moneysmart.gov.au/family-and-relationships/getting-a-pet) - [Reducing back-to-school costs](https://moneysmart.gov.au/family-and-relationships/reducing-back-to-school-costs) - [Cheap school holidays](https://moneysmart.gov.au/family-and-relationships/cheap-school-holidays) - [Getting divorced or separating](https://moneysmart.gov.au/family-and-relationships/getting-divorced-or-separating) - [Divorce and separation financial checklist](https://moneysmart.gov.au/family-and-relationships/divorce-and-separation-financial-checklist) - [Dealing with illness](https://moneysmart.gov.au/family-and-relationships/dealing-with-illness) - [Losing your partner](https://moneysmart.gov.au/family-and-relationships/losing-your-partner) - [Financial abuse](https://moneysmart.gov.au/family-and-relationships/financial-abuse) - [How to support older Australians](https://moneysmart.gov.au/family-and-relationships/how-to-support-older-australians) - [Loans, credit and debt](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#loans-credit-and-debt) - [Loans](https://moneysmart.gov.au/loans) - [Going guarantor on a loan](https://moneysmart.gov.au/loans/going-guarantor-on-a-loan) - [Car loans](https://moneysmart.gov.au/loans/car-loans) - [Loan rejection](https://moneysmart.gov.au/loans/loan-rejection) - [Payday loans](https://moneysmart.gov.au/loans/payday-loans) - [No Interest Loans](https://moneysmart.gov.au/loans/no-interest-loans) - [Personal loans](https://moneysmart.gov.au/loans/personal-loans) - [Personal loan calculator](https://moneysmart.gov.au/loans/personal-loan-calculator) - [Payday loan calculator](https://moneysmart.gov.au/loans/payday-loan-calculator) - [Other ways to borrow](https://moneysmart.gov.au/other-ways-to-borrow) - [Buy now pay later services](https://moneysmart.gov.au/other-ways-to-borrow/buy-now-pay-later-services) - [Pay advance services](https://moneysmart.gov.au/other-ways-to-borrow/pay-advance-services) - [Interest-free deals](https://moneysmart.gov.au/other-ways-to-borrow/interest-free-deals) - [Interest-free deal calculator](https://moneysmart.gov.au/other-ways-to-borrow/interest-free-deal-calculator) - [Consumer leases](https://moneysmart.gov.au/other-ways-to-borrow/consumer-leases) - [Rent vs buy calculator](https://moneysmart.gov.au/other-ways-to-borrow/rent-vs-buy-calculator) - [Credit cards](https://moneysmart.gov.au/credit-cards) - [Choosing a credit card](https://moneysmart.gov.au/credit-cards/choosing-a-credit-card) - [Pay off your credit card](https://moneysmart.gov.au/credit-cards/pay-off-your-credit-card) - [Credit card calculator](https://moneysmart.gov.au/credit-cards/credit-card-calculator) - [Credit card balance transfers](https://moneysmart.gov.au/credit-cards/credit-card-balance-transfers) - [Cancel a credit card](https://moneysmart.gov.au/credit-cards/cancel-a-credit-card) - [Home loans](https://moneysmart.gov.au/home-loans) - [Buying a house](https://moneysmart.gov.au/home-loans/buying-a-house) - [Choosing a home loan](https://moneysmart.gov.au/home-loans/choosing-a-home-loan) - [Mortgage calculator](https://moneysmart.gov.au/home-loans/mortgage-calculator) - [Switching home loans](https://moneysmart.gov.au/home-loans/switching-home-loans) - [Mortgage switching calculator](https://moneysmart.gov.au/home-loans/mortgage-switching-calculator) - [Using a mortgage broker](https://moneysmart.gov.au/home-loans/using-a-mortgage-broker) - [Pay off your mortgage faster](https://moneysmart.gov.au/home-loans/pay-off-your-mortgage-faster) - [Problems paying your mortgage](https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage) - [Interest-only home loans](https://moneysmart.gov.au/home-loans/interest-only-home-loans) - [Interest-only mortgage calculator](https://moneysmart.gov.au/home-loans/interest-only-mortgage-calculator) - [Mortgage offset accounts](https://moneysmart.gov.au/home-loans/mortgage-offset-accounts) - [Managing debt](https://moneysmart.gov.au/managing-debt) - [Get debt under control](https://moneysmart.gov.au/managing-debt/get-debt-under-control) - [Urgent help with money](https://moneysmart.gov.au/managing-debt/urgent-help-with-money) - [Financial counselling](https://moneysmart.gov.au/managing-debt/financial-counselling) - [Financial hardship](https://moneysmart.gov.au/managing-debt/financial-hardship) - [Problems paying your bills and fines](https://moneysmart.gov.au/managing-debt/problems-paying-your-bills-and-fines) - [Credit scores and credit reports](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) - [Credit repair](https://moneysmart.gov.au/managing-debt/credit-repair) - [Debt consolidation and refinancing](https://moneysmart.gov.au/managing-debt/debt-consolidation-and-refinancing) - [Dealing with debt collectors](https://moneysmart.gov.au/managing-debt/dealing-with-debt-collectors) - [Repossessed car or goods](https://moneysmart.gov.au/managing-debt/repossessed-car-or-goods) - [Bankruptcy and debt agreements](https://moneysmart.gov.au/managing-debt/bankruptcy-and-debt-agreements) - [Free legal advice](https://moneysmart.gov.au/managing-debt/free-legal-advice) - [Net worth calculator](https://moneysmart.gov.au/managing-debt/net-worth-calculator) - [Investing and planning](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#investing-and-planning) - [How to invest](https://moneysmart.gov.au/how-to-invest) - [Develop an investing plan](https://moneysmart.gov.au/how-to-invest/develop-an-investing-plan) - [Choose your investments](https://moneysmart.gov.au/how-to-invest/choose-your-investments) - [Diversification](https://moneysmart.gov.au/how-to-invest/diversification) - [Investing and tax](https://moneysmart.gov.au/how-to-invest/investing-and-tax) - [Borrowing to invest](https://moneysmart.gov.au/how-to-invest/borrowing-to-invest) - [Keep track of your investments](https://moneysmart.gov.au/how-to-invest/keep-track-of-your-investments) - [Environmental Social Governance (ESG) investing](https://moneysmart.gov.au/how-to-invest/environmental-social-governance-esg-investing) - [Islamic finance in Australia](https://moneysmart.gov.au/how-to-invest/islamic-finance-in-australia) - [What is private credit?](https://moneysmart.gov.au/how-to-invest/what-is-private-credit) - [What is share market volatility](https://moneysmart.gov.au/how-to-invest/what-is-share-market-volatility) - [Financial advice](https://moneysmart.gov.au/financial-advice) - [Financial advisers register](https://moneysmart.gov.au/financial-advice/financial-advisers-register) - [General and personal financial advice](https://moneysmart.gov.au/financial-advice/general-and-personal-financial-advice) - [Choosing a financial adviser](https://moneysmart.gov.au/financial-advice/choosing-a-financial-adviser) - [Working with a financial adviser](https://moneysmart.gov.au/financial-advice/working-with-a-financial-adviser) - [Financial advice costs](https://moneysmart.gov.au/financial-advice/financial-advice-costs) - [Problems with a financial adviser](https://moneysmart.gov.au/financial-advice/problems-with-a-financial-adviser) - [Shares](https://moneysmart.gov.au/shares) - [Choosing shares to buy](https://moneysmart.gov.au/shares/choosing-shares-to-buy) - [How to buy and sell shares](https://moneysmart.gov.au/shares/how-to-buy-and-sell-shares) - [Keeping track of your shares](https://moneysmart.gov.au/shares/keeping-track-of-your-shares) - [Employee share schemes](https://moneysmart.gov.au/shares/employee-share-schemes) - [Managed funds and ETFs](https://moneysmart.gov.au/managed-funds-and-etfs) - [Managed funds fee calculator](https://moneysmart.gov.au/managed-funds-and-etfs/managed-funds-fee-calculator) - [Choosing a managed fund](https://moneysmart.gov.au/managed-funds-and-etfs/choosing-a-managed-fund) - [Exchange traded funds (ETFs)](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs) - [Hedge funds](https://moneysmart.gov.au/managed-funds-and-etfs/hedge-funds) - [Listed investment companies (LICs)](https://moneysmart.gov.au/managed-funds-and-etfs/listed-investment-companies-lics) - [Peer to peer lending](https://moneysmart.gov.au/managed-funds-and-etfs/peer-to-peer-lending) - [Property investment](https://moneysmart.gov.au/property-investment) - [Property funds](https://moneysmart.gov.au/property-investment/property-funds) - [Timeshares](https://moneysmart.gov.au/property-investment/timeshares) - [SMSFs and property](https://moneysmart.gov.au/property-investment/smsfs-and-property) - [Buying an investment property](https://moneysmart.gov.au/property-investment/buying-an-investment-property) - [Investments paying interest](https://moneysmart.gov.au/investments-paying-interest) - [Bonds](https://moneysmart.gov.au/investments-paying-interest/bonds) - [Debentures, secured and unsecured notes](https://moneysmart.gov.au/investments-paying-interest/debentures-secured-and-unsecured-notes) - [Hybrid securities and notes](https://moneysmart.gov.au/investments-paying-interest/hybrid-securities-and-notes) - [Term deposits](https://moneysmart.gov.au/investments-paying-interest/term-deposits) - [Investment warnings](https://moneysmart.gov.au/investment-warnings) - [Binary options](https://moneysmart.gov.au/investment-warnings/binary-options) - [Company director fraud](https://moneysmart.gov.au/investment-warnings/company-director-fraud) - [Contracts for difference (CFDs)](https://moneysmart.gov.au/investment-warnings/contracts-for-difference-cfds) - [Crypto assets](https://moneysmart.gov.au/investment-warnings/crypto-assets) - [Forex trading](https://moneysmart.gov.au/investment-warnings/forex-trading) - [Investment seminars](https://moneysmart.gov.au/investment-warnings/investment-seminars) - [Insider trading](https://moneysmart.gov.au/investment-warnings/insider-trading) - [Land banking](https://moneysmart.gov.au/investment-warnings/land-banking) - [Bills of exchange](https://moneysmart.gov.au/investment-warnings/bills-of-exchange) - [Pump and dump schemes](https://moneysmart.gov.au/investment-warnings/pump-and-dump-schemes) - [Don't get burned by investment hype](https://moneysmart.gov.au/investment-warnings/don-t-get-burned-by-investment-hype) - [Lead generation and how it works](https://moneysmart.gov.au/investment-warnings/lead-generation-and-how-it-works) - [Super and retirement](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#super-and-retirement) - [Retirement](https://moneysmart.gov.au/retirement) - [Case study: Lillian's health scare](https://moneysmart.gov.au/retirement/case-study-lillian-s-health-scare) - [Case study: Bill's mortgage decision](https://moneysmart.gov.au/retirement/case-study-bill-s-mortgage-decision) - [Case study: Helen and Joe retire](https://moneysmart.gov.au/retirement/case-study-helen-and-joe-retire) - [Retirement for First Nations people](https://moneysmart.gov.au/retirement/first-nations-resources) - [Campaign resources](https://moneysmart.gov.au/retirement/campaign-resources) - [Translated resources](https://moneysmart.gov.au/retirement/translated) - [How super works](https://moneysmart.gov.au/how-super-works) - [Superannuation](https://moneysmart.gov.au/how-super-works/superannuation) - [Choosing a super fund](https://moneysmart.gov.au/how-super-works/choosing-a-super-fund) - [Types of super funds](https://moneysmart.gov.au/how-super-works/types-of-super-funds) - [Self-managed super fund (SMSF)](https://moneysmart.gov.au/how-super-works/self-managed-super-fund-smsf) - [Getting your super](https://moneysmart.gov.au/how-super-works/getting-your-super) - [When you can access your super early](https://moneysmart.gov.au/how-super-works/when-you-can-access-your-super-early) - [Find lost super](https://moneysmart.gov.au/how-super-works/find-lost-super) - [Consolidating super funds](https://moneysmart.gov.au/how-super-works/consolidating-super-funds) - [Tax and super](https://moneysmart.gov.au/how-super-works/tax-and-super) - [Superannuation calculator](https://moneysmart.gov.au/how-super-works/superannuation-calculator) - [Who gets your super if you die](https://moneysmart.gov.au/how-super-works/who-gets-your-super-if-you-die) - [Claiming a super death benefit](https://moneysmart.gov.au/how-super-works/claiming-a-super-death-benefit) - [Grow your super](https://moneysmart.gov.au/grow-your-super) - [Employer contributions calculator](https://moneysmart.gov.au/grow-your-super/employer-contributions-calculator) - [How much super should I have](https://moneysmart.gov.au/grow-your-super/how-much-super-should-i-have) - [Super contributions](https://moneysmart.gov.au/grow-your-super/super-contributions) - [Downsizer super contributions](https://moneysmart.gov.au/grow-your-super/downsizer-super-contributions) - [Super for self-employed people](https://moneysmart.gov.au/grow-your-super/super-for-self-employed-people) - [Super investment options](https://moneysmart.gov.au/grow-your-super/super-investment-options) - [Super contributions optimiser](https://moneysmart.gov.au/grow-your-super/super-contributions-optimiser) - [How to check your super](https://moneysmart.gov.au/grow-your-super/how-to-check-your-super) - [Tips to keep your retirement savings on track](https://moneysmart.gov.au/grow-your-super/tips-to-keep-your-retirement-savings-on-track) - [Get your super working over time](https://moneysmart.gov.au/grow-your-super/get-your-super-working-over-time) - [Plan for your retirement](https://moneysmart.gov.au/plan-for-your-retirement) - [Work out how much you need to retire](https://moneysmart.gov.au/plan-for-your-retirement/work-out-how-much-you-need-to-retire) - [Super and pension age calculator](https://moneysmart.gov.au/plan-for-your-retirement/super-and-pension-age-calculator) - [Make a retirement plan](https://moneysmart.gov.au/plan-for-your-retirement/make-a-retirement-plan) - [Retirement planner](https://moneysmart.gov.au/plan-for-your-retirement/retirement-planner) - [What happens to your super when you retire](https://moneysmart.gov.au/plan-for-your-retirement/what-happens-to-your-super-when-you-retire) - [Managing unexpected retirement](https://moneysmart.gov.au/plan-for-your-retirement/managing-unexpected-retirement) - [Your home in retirement](https://moneysmart.gov.au/plan-for-your-retirement/your-home-in-retirement) - [Wills and powers of attorney](https://moneysmart.gov.au/plan-for-your-retirement/wills-and-powers-of-attorney) - [Super and the Age Pension](https://moneysmart.gov.au/plan-for-your-retirement/super-and-the-age-pension) - [Retirement income sources](https://moneysmart.gov.au/retirement-income-sources) - [Age Pension and government benefits](https://moneysmart.gov.au/retirement-income-sources/age-pension-and-government-benefits) - [Account-based pensions](https://moneysmart.gov.au/retirement-income-sources/account-based-pensions) - [Account-based pension calculator](https://moneysmart.gov.au/retirement-income-sources/account-based-pension-calculator) - [Super lump sum](https://moneysmart.gov.au/retirement-income-sources/super-lump-sum) - [Annuities](https://moneysmart.gov.au/retirement-income-sources/annuities) - [Transition to retirement](https://moneysmart.gov.au/retirement-income-sources/transition-to-retirement) - [Reverse mortgage and home equity release](https://moneysmart.gov.au/retirement-income-sources/reverse-mortgage-and-home-equity-release) - [Reverse mortgage calculator](https://moneysmart.gov.au/retirement-income-sources/reverse-mortgage-calculator) - [Lifetime income streams](https://moneysmart.gov.au/retirement-income-sources/lifetime-income-streams) - [Types of retirement income](https://moneysmart.gov.au/retirement-income-sources/types-of-retirement-income) - [Manage your money in retirement](https://moneysmart.gov.au/manage-your-money-in-retirement) - [Make your money last in retirement](https://moneysmart.gov.au/manage-your-money-in-retirement/make-your-money-last-in-retirement) - [Retirement income and tax](https://moneysmart.gov.au/manage-your-money-in-retirement/retirement-income-and-tax) - [Manage health costs in retirement](https://moneysmart.gov.au/manage-your-money-in-retirement/manage-health-costs-in-retirement) - [Get help in retirement](https://moneysmart.gov.au/manage-your-money-in-retirement/get-help-in-retirement) - [Protect your money in retirement](https://moneysmart.gov.au/manage-your-money-in-retirement/protect-your-money-in-retirement) - [Downsizing in retirement](https://moneysmart.gov.au/manage-your-money-in-retirement/downsizing-in-retirement) - [Aged care](https://moneysmart.gov.au/manage-your-money-in-retirement/aged-care) - [Paying for your funeral](https://moneysmart.gov.au/manage-your-money-in-retirement/paying-for-your-funeral) - [Memory loss, dementia and your money](https://moneysmart.gov.au/manage-your-money-in-retirement/memory-loss-dementia-and-your-money) - [Insurance](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#insurance) - [Insurance](https://moneysmart.gov.au/insurance) - [How life insurance works](https://moneysmart.gov.au/how-life-insurance-works) - [Life insurance calculator](https://moneysmart.gov.au/how-life-insurance-works/life-insurance-calculator) - [Income protection insurance](https://moneysmart.gov.au/how-life-insurance-works/income-protection-insurance) - [Life cover](https://moneysmart.gov.au/how-life-insurance-works/life-cover) - [Total and permanent disability (TPD) insurance](https://moneysmart.gov.au/how-life-insurance-works/total-and-permanent-disability-tpd-insurance) - [Insurance through super](https://moneysmart.gov.au/how-life-insurance-works/insurance-through-super) - [Life insurance claims comparison tool](https://moneysmart.gov.au/how-life-insurance-works/life-insurance-claims-comparison-tool) - [Trauma insurance](https://moneysmart.gov.au/how-life-insurance-works/trauma-insurance) - [Making a life insurance claim](https://moneysmart.gov.au/how-life-insurance-works/making-a-life-insurance-claim) - [Car insurance](https://moneysmart.gov.au/car-insurance) - [Choosing car insurance](https://moneysmart.gov.au/car-insurance/choosing-car-insurance) - [Claiming on your car insurance](https://moneysmart.gov.au/car-insurance/claiming-on-your-car-insurance) - [No claim bonus on car insurance](https://moneysmart.gov.au/car-insurance/no-claim-bonus-on-car-insurance) - [Add-on car insurance](https://moneysmart.gov.au/car-insurance/add-on-car-insurance) - [Home insurance](https://moneysmart.gov.au/home-insurance) - [Choosing home insurance](https://moneysmart.gov.au/home-insurance/choosing-home-insurance) - [Contents insurance](https://moneysmart.gov.au/home-insurance/contents-insurance) - [Storm, flood and fire insurance](https://moneysmart.gov.au/home-insurance/storm-flood-and-fire-insurance) - [How to make a home insurance claim](https://moneysmart.gov.au/home-insurance/how-to-make-a-home-insurance-claim) - [Underinsurance: What it is and how to avoid it](https://moneysmart.gov.au/home-insurance/underinsurance-what-it-is-and-how-to-avoid-it) - [Add-on insurance](https://moneysmart.gov.au/add-on-insurance) - [Mobile phone, tablet and laptop insurance](https://moneysmart.gov.au/add-on-insurance/mobile-phone-tablet-and-laptop-insurance) - [Consumer credit insurance](https://moneysmart.gov.au/add-on-insurance/consumer-credit-insurance) - [Pet insurance](https://moneysmart.gov.au/add-on-insurance/pet-insurance) - [Other types of insurance](https://moneysmart.gov.au/other-types-of-insurance) - [Health insurance](https://moneysmart.gov.au/other-types-of-insurance/health-insurance) - [Funeral insurance](https://moneysmart.gov.au/other-types-of-insurance/funeral-insurance) - [Travel insurance](https://moneysmart.gov.au/other-types-of-insurance/travel-insurance) - [Dealing with natural disasters](https://moneysmart.gov.au/dealing-with-natural-disasters) - [Preparing for a natural disaster](https://moneysmart.gov.au/dealing-with-natural-disasters/preparing-for-a-natural-disaster) - [What to do after a natural disaster](https://moneysmart.gov.au/dealing-with-natural-disasters/what-to-do-after-a-natural-disaster) - [Recovering from a natural disaster](https://moneysmart.gov.au/dealing-with-natural-disasters/recovering-from-a-natural-disaster) - [Be aware of disaster chasers](https://moneysmart.gov.au/dealing-with-natural-disasters/be-aware-of-disaster-chasers) - [Scams and online safety](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#scams) - [Online safety](https://moneysmart.gov.au/online-safety) - [Protect yourself from scams](https://moneysmart.gov.au/online-safety/protect-yourself-from-scams) - [Online shopping](https://moneysmart.gov.au/online-safety/online-shopping) - [Identity theft](https://moneysmart.gov.au/online-safety/identity-theft) - [Using comparison websites](https://moneysmart.gov.au/online-safety/using-comparison-websites) - [How to spot a scam website](https://moneysmart.gov.au/online-safety/how-to-spot-a-scam-website) - [AI and money decisions](https://moneysmart.gov.au/online-safety/ai-and-money-decisions) - [What is a finfluencer](https://moneysmart.gov.au/online-safety/what-is-a-finfluencer) - [Financial scams](https://moneysmart.gov.au/financial-scams) - [Banking and credit scams](https://moneysmart.gov.au/financial-scams/banking-and-credit-scams) - [Crypto scams](https://moneysmart.gov.au/financial-scams/crypto-scams) - [Imposter bond investment scams](https://moneysmart.gov.au/financial-scams/imposter-bond-investment-scams) - [Investment scams](https://moneysmart.gov.au/financial-scams/investment-scams) - [Ponzi schemes](https://moneysmart.gov.au/financial-scams/ponzi-schemes) - [Superannuation scams](https://moneysmart.gov.au/financial-scams/superannuation-scams) - [Check and report scams](https://moneysmart.gov.au/check-and-report-scams) - [Report an investment scam](https://moneysmart.gov.au/check-and-report-scams/report-an-investment-scam) - [Check before you invest](https://moneysmart.gov.au/check-and-report-scams/check-before-you-invest) - [Investor alert list](https://moneysmart.gov.au/check-and-report-scams/investor-alert-list) - [What to do if you've been scammed](https://moneysmart.gov.au/check-and-report-scams/what-to-do-if-you-ve-been-scammed) - [Community resources](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#community) - [Find unclaimed money](https://moneysmart.gov.au/find-unclaimed-money) - [Claim money from bank accounts and bank dividends](https://moneysmart.gov.au/find-unclaimed-money/claim-money-from-bank-accounts-and-bank-dividends) - [Claim money from life insurance policies](https://moneysmart.gov.au/find-unclaimed-money/claim-money-from-life-insurance-policies) - [Claim money from shares and investments](https://moneysmart.gov.au/find-unclaimed-money/claim-money-from-shares-and-investments) - [Claim money owed to a deregistered company](https://moneysmart.gov.au/find-unclaimed-money/claim-money-owed-to-a-deregistered-company) - [Proof of ownership for unclaimed money](https://moneysmart.gov.au/find-unclaimed-money/proof-of-ownership-for-unclaimed-money) - [Money held by state governments](https://moneysmart.gov.au/find-unclaimed-money/money-held-by-state-governments) - [Interest paid on unclaimed money](https://moneysmart.gov.au/find-unclaimed-money/interest-paid-on-unclaimed-money) - [Moneysmart for teachers](https://moneysmart.gov.au/teaching) - [Lesson plans](https://moneysmart.gov.au/teaching/lesson-plans) - [Teaching consumer and financial literacy](https://moneysmart.gov.au/teaching/teaching-consumer-and-financial-literacy) - [Student life and money](https://moneysmart.gov.au/student-life-and-money) - [Studying](https://moneysmart.gov.au/student-life-and-money/studying) - [Moving out of home](https://moneysmart.gov.au/student-life-and-money/moving-out-of-home) - [Rental bonds and leases](https://moneysmart.gov.au/student-life-and-money/rental-bonds-and-leases) - [Getting a job](https://moneysmart.gov.au/student-life-and-money/getting-a-job) - [Credit and debt](https://moneysmart.gov.au/student-life-and-money/credit-and-debt) - [Choosing a mobile phone plan](https://moneysmart.gov.au/student-life-and-money/choosing-a-mobile-phone-plan) - [Buying and running a car](https://moneysmart.gov.au/student-life-and-money/buying-and-running-a-car) - [Publications and resources](https://moneysmart.gov.au/publications-and-resources) - [Publications](https://moneysmart.gov.au/publications-and-resources/publications) - [Money tips in other languages](https://moneysmart.gov.au/publications-and-resources/money-tips-in-other-languages) - [How to complain](https://moneysmart.gov.au/publications-and-resources/how-to-complain) - [Supporting First Nations people with money matters](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters) - [Book up](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/book-up) - [Dealing with family pressure about money](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/dealing-with-family-pressure-about-money) - [Door-to-door sales](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/door-to-door-sales) - [Managing large sums of money](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/managing-large-sums-of-money) - [Paying for funerals](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/paying-for-funerals) - [Buying a hamper](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/buying-a-hamper) - [Superannuation](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/superannuation) - [How to prove your identity](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/how-to-prove-your-identity) - [Bank accounts](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/bank-accounts) - [Cash loans](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/cash-loans) - [How insurance works](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/how-insurance-works) - [How to choose insurance](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/how-to-choose-insurance) - [Making an insurance claim](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/making-an-insurance-claim) - [First Nations services that can help](https://moneysmart.gov.au/supporting-first-nations-people-with-money-matters/first-nations-services-that-can-help) - [About us](https://moneysmart.gov.au/about-us) - [Contact us](https://moneysmart.gov.au/contact-us) - [Glossary](https://moneysmart.gov.au/glossary) - [Media centre](https://moneysmart.gov.au/media-centre) - [Like MoneySmart on Facebook](https://www.facebook.com/MoneySmartAu "Like MoneySmart on Facebook") - [Subscribe to MoneySmart on Youtube](https://www.youtube.com/user/MoneySmartAu "Subscribe to MoneySmart on Youtube") - [Follow MoneySmart on Instagram](https://www.instagram.com/moneysmartau/ "Follow MoneySmart on Instagram") ![Australian Government crest](https://static.moneysmart.gov.au/nextgen/img/image-placeholder.gif) # Exchange traded funds (ETFs) Exchange traded funds (ETFs) can be a low-cost way to earn a return similar to an index or a commodity. - On this page - [How ETFs work](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#how-etfs-work "How ETFs work") - [Types of ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#types-of-etfs "Types of ETFs") - [Pros and cons of investing in ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#pros-and-cons-of-investing-in-etfs "Pros and cons of investing in ETFs") - [How to buy and sell units in ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#how-to-buy-and-sell-units-in-etfs "How to buy and sell units in ETFs") ## How ETFs work An ETF is a managed fund An investment fund where your money and that of other investors is pooled and used to buy [assets](https://moneysmart.gov.au/glossary/asset "asset") such as cash, [shares](https://moneysmart.gov.au/glossary/share "share"), [bonds](https://moneysmart.gov.au/glossary/bond "bond") and listed [property trusts](https://moneysmart.gov.au/glossary/property-trust "property trust"). The fund is managed by a [fund manager](https://moneysmart.gov.au/glossary/fund-manager "fund manager"). On these webpages, 'managed fund' is used when talking about managed investment schemes or [corporate collective investment vehicles](https://moneysmart.gov.au/glossary/corporate-collective-investment-vehicle-cciv "Corporate Collective Investment Vehicle (CCIV)") (CCIVs). that you can buy or sell on an exchange, like the Australian Securities Exchange (ASX) Australia’s biggest exchange, where [share](https://moneysmart.gov.au/glossary/share "share")s in public companies, [futures](https://moneysmart.gov.au/glossary/futures "futures"), [option](https://moneysmart.gov.au/glossary/option "option")s, [warrant](https://moneysmart.gov.au/glossary/warrant "warrant")s, [bond](https://moneysmart.gov.au/glossary/bond "bond")s and other securities and derivatives are traded. or Cboe Australia (CXA) Australia’s second largest securities exchange offering an alternative trading platform for Australian listed securities as well as a range of unique products including warrants and funds.. They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares. When you invest in an ETF, you don't own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets. ETF units can be created or redeemed to match investor demand. This helps the price of the units to stay close to the net asset value (NAV) The value of assets less liabilities, often expressed as a per unit or per share value. For example, the net asset value of a [managed fund](https://moneysmart.gov.au/glossary/managed-fund "managed fund") or [exchange-traded fund](https://moneysmart.gov.au/glossary/exchange-traded-fund "exchange-traded fund") per unit would be calculated by subtracting the fund's liabilities from the fund's assets and dividing the result by the number of units on offer. of the ETF. This differs from shares in a company or units in a Listed Investment Trust [(LIC)](https://moneysmart.gov.au/managed-funds-and-etfs/listed-investment-companies-lics "Listed investment companies (LICs)"), where the price fluctuates based on investor demand. The [ASX ETF investor course](https://www2.asx.com.au/investors/investment-tools-and-resources/online-courses/etfs-course "ASX ETF investor course") can help you learn more about how ETFs work. ## Types of ETFs ### Passively managed ETFs In Australia, most ETFs are passive investments A 'buy and hold' investment management approach where a fund manager holds a portfolio of assets aimed at generating a return before fees similar to the index it is tracking, such as the ASX All Ordinaries Index or the ASX200 Index. (Also known as an index fund.) that don't try to outperform the market. The role of the fund manager of a passive investment is to track the value of: - an index A statistical measure of change in the value of a market, asset class or industry sector. The value of an index increases or decreases with changes in the value of the underlying security or sector it's measuring. For example, the ASX All Ordinaries Index measures the change in the overall value of 500 largest companies by market capitalisation listed on the Australian Securities Exchange. , for example the ASX200 The ASX200 is a stock market index that measures the performance of 200 largest companies, by market capitalisation, listed on the Australian Securities Exchange. or S\&P500 The S\&P500 is a stock market index that measures the performance of 500 largest companies, by market capitalisation, listed on exchanges in the United States. - a specific commodity, such as gold The value of the ETF goes up or down with the index or asset they're tracking. ### Active ETFs and Hedge Funds Exchange traded managed funds (also known as ‘Active ETFs’) and exchange traded [hedge funds](https://moneysmart.gov.au/managed-funds-and-etfs/hedge-funds "Hedge funds") are actively managed An investment management approach where a fund manager buys and sells investments regularly in an effort to outperform a specific market index, such as the ASX200. investments. For these funds, investment managers may use high risk trading strategies to try to outperform an index. ### Physically-backed and synthetic ETFs ETFs can be either physically-backed or synthetic. - **Physically-backed ETF** – invests in all the securities In relation to financial [asset](https://moneysmart.gov.au/glossary/asset "asset")s, a security is an [investment](https://moneysmart.gov.au/glossary/investment "investment") such as [share](https://moneysmart.gov.au/glossary/share "share")s or [bond](https://moneysmart.gov.au/glossary/bond "bond")s which can be traded in financial markets. in the index or a sample of the securities in the index. - **Synthetic ETF** – hold some of the underlying assets and use derivatives A financial instrument whose value is 'derived' from an underlying asset such as a share, commodity or index. Common types of derivatives include [option](https://moneysmart.gov.au/glossary/option "option")s and [futures](https://moneysmart.gov.au/glossary/futures "futures") contracts. to copy the movements of an index or asset. This type of ETF may use the word 'synthetic' in its name. Synthetic ETFs have an additional risk that the counterparty to the derivative could fail. ### What you can invest in through an ETF ETFs are available for a range of asset classes A category of investments with similar characteristics and market behaviours. Examples include cash, fixed interest, property and shares. and individual assets. These include: - Australian shares - international shares - sectors A classification used to group companies that are related in terms of their primary business activities. Major industry sectors include consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, metals and mining, telecommunications and utilities. of the Australian or international share market, such as mining or financials - fixed income investments like bonds - precious metals and commodities - foreign currencies - crypto assets - diversified across multiple asset classes Visit the [ASX](https://www.asx.com.au/issuers/investment-products/product-options "ASX product options") or [CXA](https://www.cboe.com.au/funds "Cboe funds list") websites for the ETFs you can invest in. ## Pros and cons of investing in ETFs ### Pros - **Diversification** – ETFs allow you to buy a basket of shares or assets in a single trade. This can help to diversify within an asset class. ETFs also allow you to invest in markets or assets it can be difficult or expensive to access. You can also diversify across ETFs so there's less chance of loss if an ETF provider collapses. - **Transparency** – ETFs publish the net asset value (NAV) daily. This can help you track how the underlying asset are performing and if the price of the ETF is close to the NAV. Most ETFs publish the list of assets owned by the fund, so you know exactly what the ETF is invested in. - **Low cost** – a lot of ETFs have a low management expense ratio (MER). They're usually cheaper than equivalent managed funds An investment management approach where a fund manager buys and sells investments regularly in an effort to outperform a specific market index, such as the ASX200. . - **Easy to trade** – you can buy and sell ETFs during the trading hours of the exchange, through a broker. You can typically buy smaller quantities of ETF units than unlisted managed funds. ### Cons - **Market or sector risk** – the market or sector the ETF is tracking could fall in value. For example, if the ASX200 The ASX200 is a stock market index that measures the performance of 200 largest companies, by market capitalisation, listed on the Australian Securities Exchange. declines, the value of your ETF investment will also fall. - **Currency risk** – if the ETF invests in international assets, you face the risk of currency movements impacting your returns. Some ETFs are 'currency hedged' which removes this risk. - **Liquidity risk** – some ETFs invest in assets that are not liquid How easily an investment or financial product can be converted to cash. Shares in large publicly listed companies that are regularly traded on the [ASX](https://moneysmart.gov.au/glossary/australian-securities-exchange-asx "Australian Securities Exchange (ASX)") (Australian Securities Exchange) are considered liquid assets, while direct property investments are less liquid, due to difficulties and time delays that may be experienced when buying and selling. Liquid markets have enough trading activity to allow both buyers and sellers to easily transact as they wish. , such as emerging market debt. This can make it difficult at times for the ETF provider to create or redeem securities. - **Tracking errors** – an ETF's return may differ from the index or asset it's designed to track. This can be due to differences in the assets owned by the ETF and the index it is designed to track, fees, taxes and other factors. This means you could buy or sell when it's not trading at the indicative net asset value (iNAV). ## How to buy and sell units in ETFs You can buy and sell units in an ETF through a stockbroker. It's the same as [buying and selling shares](https://moneysmart.gov.au/shares/how-to-buy-and-sell-shares "How to buy and sell shares"). You buy and sell at the market price at the time of the trade. Settlement When the title or legal ownership of a financial product, such as shares or ETFs, is exchanged for money. A broker, or an agent of the broker, handles settlement. of trades takes place two business days after you buy or sell the ETF. You have to pay brokerage fees when you buy or sell an ETF. You may also be able to buy and sell units in the ETF fund directly with the ETF provider. These transactions will occur at the end of the day with a price reflecting the NAV of the units. ### Compare the price and NAV or iNAV You can check if an ETF is fairly priced by comparing its price on the ASX or Cboe with the NAV or the indicative or intraday NAV (iNAV). The NAV is calculated by taking the assets of the fund, subtracting the liabilities and dividing this by the number of units in the fund at the end of the day. The iNAV is a real-time estimate of the NAV, published during the day. ETF providers give updates of the NAV: - on the ASX at the end of the day - generally on the ETF provider's website The price to buy and sell an ETF should be close to the NAV per unit. But at times, such as on days with large changes in prices of the asset classes, the price of the ETF may move away from the NAV. You can use the iNAV as a reference point during the day to understand if an ETF you're buying or selling is at, or close to, the NAV per unit. You can see the latest iNAV from your broker by adding 'Y' before the ETF ticker. For example 'YABCD' for the ETF ticker 'ABCD'. ### When to buy and sell ETF units To get an ETF price that is more likely to represent its underlying value, place your trades at least 30 minutes after the market opens. It's also better to buy or sell ETFs when the market for the underlying asset is open. For example, if you're buying or selling an ETF that tracks Asian shares, place your orders when the Asian sharemarkets are open. ### Check the product disclosure statement before you invest A product disclosure statement (PDS) A document that financial service providers must provide to you when they recommend or offer a financial product. It must include information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure. contains a lot of information you'll need to know about an ETF. It includes information on: - what index, sector or asset the ETF returns aims to replicate - the fees and costs - how to buy or sell units in the ETF on market or, if allowed, directly with the ETF provider - the risks of investing in the ETF - how to complain if you have a problem with the ETF If you have questions about an ETF you can contact the fund manager or get [financial advice](https://moneysmart.gov.au/financial-advice "Financial advice"). You can also check recent market announcements for new information on an ETF. [1How ETFs work](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#how-etfs-work) [2Types of ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#types-of-etfs) [3Pros and cons of investing in ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#pros-and-cons-of-investing-in-etfs) [4How to buy and sell units in ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#how-to-buy-and-sell-units-in-etfs) Do you find this page useful? Yes No Why? It had the information I was looking for The page makes sense The information is balanced and unbiased The information gave me a sense of what to do next Submit Any other feedback Why not? It didn't have the information I was looking for The page was confusing The information overwhelmed me There wasn't enough information for me to take action Submit Any other feedback Your feedback Your feedback relates to: You would like to: Your issue is: - **Calculator disclaimers and assumptions** can be found under each calculator. Refer to these for more detailed information about how a specific calculator works. - **Calculator frequently asked questions** can be found under most calculators. Refer to these for more information. The links below provide more information on complaints and reporting scams: - [Complain about a financial product or service](https://moneysmart.gov.au/how-to-complain "How to complain") - [Report a scam](https://moneysmart.gov.au/check-and-report-scams/what-to-do-if-you-ve-been-scammed "Report a scam") - [Report misconduct to ASIC](https://asic.gov.au/about-asic/contact-us/how-to-complain/ "ASIC - how to complain") We don't lend money, arrange loans or provide personal financial advice. If you are experiencing difficulties with money, the following pages can help: - [Urgent help with money](https://moneysmart.gov.au/managing-debt/urgent-help-with-money "Urgent help with money") - [No or low interest loans](https://moneysmart.gov.au/loans/no-interest-loans "No or low interest loans") - [Problems paying your bills or fines](https://moneysmart.gov.au/managing-debt/problems-paying-your-bills-and-fines "Problems paying your bills and fines") - [Problems paying your mortgage](https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage "Problems paying your mortgage") - [Find a financial counsellor](https://moneysmart.gov.au/managing-debt/financial-counselling "Financial counselling") Summary of your feedback: Your comments: The page/calculator/app you are referring to (eg. cut/paste URL): Cancel Send feedback ## Up next in Managed funds and ETFs arrow\_backMove left arrow\_forwardMove right - [Managed funds fee calculator This calculator helps you check how fees and costs can affect your investment 10 min read](https://moneysmart.gov.au/managed-funds-and-etfs/managed-funds-fee-calculator) - [Choosing a managed fund We explain the types of managed funds you can invest in and what to look for to find a managed fund that suits you 8 min read](https://moneysmart.gov.au/managed-funds-and-etfs/choosing-a-managed-fund) - [Hedge funds Hedge funds use investment strategies that are more complex than other managed funds. Learn how they work 4 min read](https://moneysmart.gov.au/managed-funds-and-etfs/hedge-funds) - [Listed investment companies (LICs) Decide whether a listed investment company or trust is right for you 3 min read](https://moneysmart.gov.au/managed-funds-and-etfs/listed-investment-companies-lics) - [Peer to peer lending Decide whether investing via peer to peer lending is right for you 4 min read](https://moneysmart.gov.au/managed-funds-and-etfs/peer-to-peer-lending) - ![](https://download.asic.gov.au/asic-nextgen/img/djooroot_moort_perterfarmer_artwork.png) Djooroot Moort by Peter Farmer Acknowledgement of Country ASIC acknowledges the Traditional Owners of the lands and waters on which we live and work. We pay respect to Elders past and present as the custodians of the world's oldest continuing cultures. - Moneysmart - [About us](https://moneysmart.gov.au/about-us "About us") - [Contact us](https://moneysmart.gov.au/contact-us "Contact us") - [Glossary](https://moneysmart.gov.au/glossary "Glossary") - [Media centre](https://moneysmart.gov.au/media-centre "Media centre") - [Subscribe](https://moneysmart.gov.au/subscribe-to-our-newsletter "Subscribe") - Social - [Instagram](https://www.instagram.com/moneysmartau/ "Follow MoneySmart on Instagram") - [Facebook](https://www.facebook.com/MoneySmartAu "Like MoneySmart on Facebook") - [Youtube](https://www.youtube.com/user/MoneySmartAu "Subscribe to MoneySmart on Youtube") search Popular content [Find unclaimed money](https://moneysmart.gov.au/find-unclaimed-money) [Mortgage calculator](https://moneysmart.gov.au/home-loans/mortgage-calculator) [Budget planner](https://moneysmart.gov.au/budgeting/budget-planner) [How super works](https://moneysmart.gov.au/how-super-works) [Banking and credit scams](https://moneysmart.gov.au/banking/banking-and-credit-scams) [How to invest](https://moneysmart.gov.au/how-to-invest) [Financial advisers register](https://moneysmart.gov.au/financial-advice/financial-advisers-register) Recently visited

Readable Markdown

Exchange traded funds (ETFs) can be a low-cost way to earn a return similar to an index or a commodity. - On this page - [How ETFs work](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#how-etfs-work "How ETFs work") - [Types of ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#types-of-etfs "Types of ETFs") - [Pros and cons of investing in ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#pros-and-cons-of-investing-in-etfs "Pros and cons of investing in ETFs") - [How to buy and sell units in ETFs](https://moneysmart.gov.au/managed-funds-and-etfs/exchange-traded-funds-etfs#how-to-buy-and-sell-units-in-etfs "How to buy and sell units in ETFs") ## How ETFs work An ETF is a that you can buy or sell on an exchange, like the Australian Securities Exchange or Cboe Australia . They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares. When you invest in an ETF, you don't own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets. ETF units can be created or redeemed to match investor demand. This helps the price of the units to stay close to the net asset value of the ETF. This differs from shares in a company or units in a Listed Investment Trust [(LIC)](https://moneysmart.gov.au/managed-funds-and-etfs/listed-investment-companies-lics "Listed investment companies (LICs)"), where the price fluctuates based on investor demand. The [ASX ETF investor course](https://www2.asx.com.au/investors/investment-tools-and-resources/online-courses/etfs-course "ASX ETF investor course") can help you learn more about how ETFs work. ## Types of ETFs ### Passively managed ETFs In Australia, most ETFs are that don't try to outperform the market. The role of the fund manager of a passive investment is to track the value of: - an , for example the or - a specific commodity, such as gold The value of the ETF goes up or down with the index or asset they're tracking. ### Active ETFs and Hedge Funds Exchange traded managed funds (also known as ‘Active ETFs’) and exchange traded [hedge funds](https://moneysmart.gov.au/managed-funds-and-etfs/hedge-funds "Hedge funds") are investments. For these funds, investment managers may use high risk trading strategies to try to outperform an index. ### Physically-backed and synthetic ETFs ETFs can be either physically-backed or synthetic. - **Physically-backed ETF** – invests in all the in the index or a sample of the securities in the index. - **Synthetic ETF** – hold some of the underlying assets and use to copy the movements of an index or asset. This type of ETF may use the word 'synthetic' in its name. Synthetic ETFs have an additional risk that the counterparty to the derivative could fail. ### What you can invest in through an ETF ETFs are available for a range of and individual assets. These include: - Australian shares - international shares - of the Australian or international share market, such as mining or financials - fixed income investments like bonds - precious metals and commodities - foreign currencies - crypto assets - diversified across multiple asset classes Visit the [ASX](https://www.asx.com.au/issuers/investment-products/product-options "ASX product options") or [CXA](https://www.cboe.com.au/funds "Cboe funds list") websites for the ETFs you can invest in. ## Pros and cons of investing in ETFs ### Pros - **Diversification** – ETFs allow you to buy a basket of shares or assets in a single trade. This can help to diversify within an asset class. ETFs also allow you to invest in markets or assets it can be difficult or expensive to access. You can also diversify across ETFs so there's less chance of loss if an ETF provider collapses. - **Transparency** – ETFs publish the net asset value (NAV) daily. This can help you track how the underlying asset are performing and if the price of the ETF is close to the NAV. Most ETFs publish the list of assets owned by the fund, so you know exactly what the ETF is invested in. - **Low cost** – a lot of ETFs have a low management expense ratio (MER). They're usually cheaper than equivalent . - **Easy to trade** – you can buy and sell ETFs during the trading hours of the exchange, through a broker. You can typically buy smaller quantities of ETF units than unlisted managed funds. ### Cons - **Market or sector risk** – the market or sector the ETF is tracking could fall in value. For example, if the declines, the value of your ETF investment will also fall. - **Currency risk** – if the ETF invests in international assets, you face the risk of currency movements impacting your returns. Some ETFs are 'currency hedged' which removes this risk. - **Liquidity risk** – some ETFs invest in assets that are not , such as emerging market debt. This can make it difficult at times for the ETF provider to create or redeem securities. - **Tracking errors** – an ETF's return may differ from the index or asset it's designed to track. This can be due to differences in the assets owned by the ETF and the index it is designed to track, fees, taxes and other factors. This means you could buy or sell when it's not trading at the indicative net asset value (iNAV). ## How to buy and sell units in ETFs You can buy and sell units in an ETF through a stockbroker. It's the same as [buying and selling shares](https://moneysmart.gov.au/shares/how-to-buy-and-sell-shares "How to buy and sell shares"). You buy and sell at the market price at the time of the trade. of trades takes place two business days after you buy or sell the ETF. You have to pay brokerage fees when you buy or sell an ETF. You may also be able to buy and sell units in the ETF fund directly with the ETF provider. These transactions will occur at the end of the day with a price reflecting the NAV of the units. ### Compare the price and NAV or iNAV You can check if an ETF is fairly priced by comparing its price on the ASX or Cboe with the NAV or the indicative or intraday NAV (iNAV). The NAV is calculated by taking the assets of the fund, subtracting the liabilities and dividing this by the number of units in the fund at the end of the day. The iNAV is a real-time estimate of the NAV, published during the day. ETF providers give updates of the NAV: - on the ASX at the end of the day - generally on the ETF provider's website The price to buy and sell an ETF should be close to the NAV per unit. But at times, such as on days with large changes in prices of the asset classes, the price of the ETF may move away from the NAV. You can use the iNAV as a reference point during the day to understand if an ETF you're buying or selling is at, or close to, the NAV per unit. You can see the latest iNAV from your broker by adding 'Y' before the ETF ticker. For example 'YABCD' for the ETF ticker 'ABCD'. ### When to buy and sell ETF units To get an ETF price that is more likely to represent its underlying value, place your trades at least 30 minutes after the market opens. It's also better to buy or sell ETFs when the market for the underlying asset is open. For example, if you're buying or selling an ETF that tracks Asian shares, place your orders when the Asian sharemarkets are open. ### Check the product disclosure statement before you invest A product disclosure statement contains a lot of information you'll need to know about an ETF. It includes information on: - what index, sector or asset the ETF returns aims to replicate - the fees and costs - how to buy or sell units in the ETF on market or, if allowed, directly with the ETF provider - the risks of investing in the ETF - how to complain if you have a problem with the ETF If you have questions about an ETF you can contact the fund manager or get [financial advice](https://moneysmart.gov.au/financial-advice "Financial advice"). You can also check recent market announcements for new information on an ETF.

ML Classification

ML Categories

/Finance		99.8%
/Finance/Investing		99.7%
/Finance/Investing/Funds		92.2%

Raw JSON

{
    "/Finance": 998,
    "/Finance/Investing": 997,
    "/Finance/Investing/Funds": 922
}

ML Page Types

/Article		98.6%
/Article/Tutorial_or_Guide		58.1%

Raw JSON

{
    "/Article": 986,
    "/Article/Tutorial_or_Guide": 581
}

ML Intent Types

Informational

99.9%

Raw JSON

{
    "Informational": 999
}

Content Metadata

Language

Author

null

Publish Time

not set

Original Publish Time

2020-02-05 05:32:57 (6 years ago)

Republished

Word Count (Total)

3,576

Word Count (Content)

1,252

Links

External Links

Internal Links

341

Technical SEO

Meta Nofollow

Meta Noarchive

JS Rendered

Yes

Redirect Target

null

Performance

Download Time (ms)

881

TTFB (ms)

511

Download Size (bytes)

15,492

Shard

87 (laksa)

Root Hash

8642081752145688487

Unparsed URL

au,gov,moneysmart!/managed-funds-and-etfs/exchange-traded-funds-etfs s443