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Indexed Funds

Discussion in 'Exchange Traded Funds (ETF)' started by farmer, 17th Dec, 2007.

  1. farmer

    farmer New Member

    Joined:
    17th Dec, 2007
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    Location:
    Queensland
    Hello,

    I was wondering if someone could kindly suggest an index fund for me? I am searching for a fund that will simply track the All Ords so I would expect the fees to be very low.

    Any help would be greatly appreciated.

    Thanks,

    Matt
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Location:
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    I think an index fund should charge less than 0.5% MER ... and most of the ones I've found locally charge well over 1% :eek:

    CFS have an ASX200 retail index fund which charges 1.1% - too high in my opinion

    Vanguard's ASX300 retail index fund charges 0.75% for the first $50,000, 0.5% for the next $50,000 and 0.35% for the balance over $100,000 ... which is a bit better

    How about an ETF ? StreetTracks have their SPDR S&P/ASX 200 Fund which trades on the stock exchange. MER is about 0.286%p.a. I think.

    This is not a recommendation for any of these funds - I haven't invested in them personally and can't comment on performance or otherwise. There are also other index funds out there which you should consider - this is just a couple of options to look at.
     
  3. Bantam Roosta

    Bantam Roosta Well-Known Member

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    Location:
    Canberra, ACT
    I don't think you can beat STW for what you are describing.

    BR
     
  4. farmer

    farmer New Member

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    17th Dec, 2007
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    Location:
    Queensland
    Thanks guys, Bantam Roosta, what is STW?
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Location:
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    STW is the ASX code for the SPDR S&P/ASX 200 Fund

    StreetTracks has information about their ETFs and ETFs in general: SPDRs

    More info on ASX website: Reasons for investing in ETFs listed on ASX