ETFs represent investment collections comprising various assets such as stocks, bonds, or commodities. They typically provide an economical method for investors to hold a diversified portfolio.

For instance, the A200 ETF mirrors the ASX200, which includes Australia’s 200 largest companies. This approach allows investors to mitigate risk by diversifying their investment across multiple stocks rather than relying on just one.

“ETFs really open up access to wealth creation without having to be a property owner.”

Betashares expects more Australians to invest in ETFs and push the industry to $500 billion in assets by 2030.

Australians can invest directly with an ETF provider, but they can also use an online broker or pick ready-made portfolios.

But Nine’s money editor Effie Zahos says ETFs are not completely risk-free.

ETFs will rise and fall in line with the value underlying assets, and global ETFs can also be hit by currency swings.

Depending on the ETF, fees can range between 0.03 per cent and 2.56 per cent.

Be aware that each transaction, whether buying or selling, may incur brokerage fees. Therefore, reviewing the product disclosure statement before investing is crucial.

ETFs also require a medium to long-term investment time frame to generate returns.

The content on this website is for general informational purposes only and should not be seen as personalized financial advice. It does not consider your specific objectives, financial situation, or needs. Prior to making any decisions based on this information, evaluate its relevance to your personal circumstances and objectives.