Each ETF is still limited to 20% of your overall Australian Super assets. There are new Australian Shares and Fixed Interest ETF choices also but once you include transaction fees, Australian Super's competitively priced and well-performing Australian Shares and Australian Fixed Interest "DIY Mix options" will be hard to beat using ETFs.
| Global Large-Cap Shares | MER | |
|---|---|---|
| Vanguard® US Total Market Shares Index ETF | VTS | 0.05% |
| Vanguard® All-World ex-US Shares Index ETF | VEU | 0.15% |
| SPDR® S&P® World ex Australia Fund | WXOZ | 0.42% |
| SPDR® S&P® World ex Australia (Hedged) Fund | WXHG | 0.48% |
Link: Australian Super Member Direct Investment Menu
Thanks for this useful blog Super(annuation)Freak.
ReplyDeleteI'm currently with Australian Super with about $28,000 in it. I'm 28 and working full time and was wondering how I should approach investing in low cost indexes with my superannuation.
Would it be a good idea to set up a SMSF with esuperfund for $699 a year and invest all of it into a Vanguard indexes or use Australian Super's member direct and spread my investment across the available low cost indexes offered.
Thanks
Hi Vincent,
DeleteThat's what I did too. Before you establish an SMSF, do a rough calculation of all super fee vs. return.
Establishing an SMSF (with esuperfund) would incur a fixed total of $699+$259 (ATO levy)=$958.
You will also incur brokerage fee of $20 per transaction. Assuming that you only transact twice a year to keep brokerage cost down, you will incur a brokerage of $40.
You will also incur a roughly around 0.30% management fee by the ETFs.
This brings a total to $958+$40+$84 (0.30%)=$1082, bringing your total expense to 3.8% of your total portfolio, which is quite expensive.
I would suggest you stay with Australian Super, until your super balance increases such that your expense ratio is less than 0.50%.
Hope that helps
Sensible Investor