How To Pick & Choose ASX ETFs

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Australian Finance Podcast 24 min 3 speakers 2 chapters transcribed 3 months ago
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What are ASX ETFs and why are they important?

Owen Raskovich 0:00
Property investors often talk about using debt to build wealth. In the share market, that's called gearing. With the BetaShares WealthBuilder range, investors can access moderate gearing into shares, and with the newly launched GG-BL, That means exposure to a diversified portfolio of around 1,300 global companies excluding Australia, all with no loan applications, credit checks, or margin calls. Gearing magnifies both gains and losses, so it's only suitable for investors with a very high tolerance for risk. You can learn more about the WealthBuilder range of ETFs at the BetaShares website. And don't forget to read the PDS and TMD to decide if it's right for you. BetaShares Capital Limited is the issuer.
Owen Raskovich 0:45
Here's something worth knowing if you've been meaning to make the switch to a better broker. To celebrate their fifth birthday, Perla are offering three free trades a month for five months if you transfer your portfolio across with a minimum of $1,000. For anyone investing regularly, that's meaningful savings on brokerage that can stay invested instead. Perla is chess-sponsored, built specifically for long-term investors, and now has over $3 billion invested on the platform. If you've been with a platform that doesn't quite fit your strategy anymore, it might be time to take a look. You'll find all of the details at perla.com slash lp slash rask. That's perla.com slash lp slash rask.
Kate Campbell 1:28
Welcome to the Australian Finance Podcast, a podcast for people who want to learn more about their personal finances and get the most from their money. This series is hosted by Kate Campbell from HowToMoney and Owen Raskovich from Rask Finance.
Owen Raskovich 1:43
The Australian Finance Podcast is provided for educational purposes only. The information is general in nature and does not take into account your needs, goals or objectives. What that means is the information does not apply to you specifically. So consider getting the advice of a licensed and trusted professional before acting on the information. Kate, welcome to the next episode of the Australian Finance Podcast. What are we talking about today?
Kate Campbell 2:07
Well, today I thought we should talk about how exchange-traded funds, or more commonly known as ETFs, have changed our personal investing worlds and what we're so keen on about them.
Owen Raskovich 2:19
Okay. Yeah. Why we like them. Yeah. Sure. So, I feel like we've done an episode on this, but we're going to go into a bit more detail what to look for. We've had a few questions come through about ETFs and how to get started.
Kate Campbell 2:32
Because we do mention them a lot.
Yeah.
Owen Raskovich 2:33
We do. Yes, we do. Probably too much. Some people will think that's like, I don't know, we're singing from the hymn books of the ETF issuers or something, but we're not. So, okay, cool. So we're going to do like a quick recap and then we're going to dig into some of the stuff.
Kate Campbell 2:48
And some of the key things to look for if you're trying to pick your own ETF.
Owen Raskovich 2:52
Cool. Okay. So why don't we, first of all, just kick things off. What is an ETF?
Kate Campbell 2:57
So Exchange Traded Fund, it essentially represents a basket of shares. Well, it could be anything really.
Owen Raskovich 3:06
But people know them as shares, right? Yeah.
Kate Campbell 3:08
So we'll stick with shares for now. So you might have an ETF provider that buys the top 200 Australian listed shares and they package it all up neatly. Each share is weighted accordingly to the index and you can buy units of this share.
Owen Raskovich 3:25
Okay. So, you buy the basket instead of going out and buying each individual one, you get all 200 in one go. Yeah.
Kate Campbell 3:30
So, someone's already done the shopping for you because it would cost you a fortune to go out and buy every single one of those 200 shares in terms of brokerage, time, effort, money. And that top 200 share and basket keeps changing as well. So... The ETF provider actually keeps buying and selling based on what's in the top 200, for example. But, of course, there's ETFs for everything and anything nowadays.
Owen Raskovich 3:57
There's plenty of them. I think there's around about 200 as we record this, but there'll probably be more.
Kate Campbell 4:01
I mean, globally, there's ETFs for cybersecurity and healthcare and all sorts of things.

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