Exchange traded funds, commonly known as ETFs, are an increasingly popular investment vehicle especially for portfolio diversification and risk management. ETFs can be easily purchased on the Australia stock market or on global exchanges and can be a low-cost way to get access to multiple stocks in a particular market or sector.
In Australia, the ETF landscape is evolving and continues to grow at a phenomenal rate. Assets under management (AUM) in the Australian ETFs market have more than tripled over four years to 2018 to around $25 billion. While globally, AUM for exchange-traded products increased by over 80 per cent over four years to 2018 and totalled around $5 trillion at the end of 2016, with the United States accounting for over 70 per cent of global AUM.
Low cost access to multiple stocks
Quick and simple to buy and sell on listed exchanges through your POEMS platform
Transparency in fees and pricing
Invest in asset classes previously only available to wholesale or institutional
investors (fixed-income products and emerging
Available on the ASX and international stock exchanges
Price movements in the ETF
Currency and underlying fluctuations
How it Works
An ETF usually comprises an investment portfolio or basket of securities such as shares, bonds, commodity and more. ETFs use an indexing approach to track their value.Investors can easily and quickly gain access to diversified investment portfolios at a low cost. This provides the flexibility to invest in different underlying portfolio while benefiting from changes in portfolio value.
Through POEMS Trade, investors are able to access not only ETFs from Australian Securities Exchange (ASX) but also overseas ETFs listed in over 20 international stock exchanges.
Types of ETFs
Designed to track a particular index, like the S&P 500 or NASDAQ
Designed to track the price of a commodity such as gold, oil or corn
Designed to outperform an index, unlike most ETFs, which are designed to track an index
Designed to provide exposure to a particular industry, such as oil, pharmacueticals or high tech
Designed to track non-U.S. markets, such as Japan's Nikkei Index or Hong Kong's Seng Index
Designed to provide exposure to virtually every type of bond available; U.S. Treasury, corporate, municipal, international, high-yield and more
How to Get Started
Start an online application to open your account
Complete signed documents and fund your trading account
Buy and sell shares with our online trading platform