How To Start Investing In ETFs In Australia 2021 - Step By Step Beginners Guide To ETFs On ASX

Beginners guide to investing in your first ETF (Exchange Traded Fund) in Australia. Learn what you need to consider when buying your first ETF on the ASX and follow along with this step by guide for investing in low cost index funds in Australia for beginners.

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What exactly is an ETF, well it stands for Exchange Traded Fund, and an ETF is really just a simple way for you invest in a whole group of companies by only needing to purchase a single share, rather than needing to purchase individual shares in every single one of those companies.

ETFs come in two overarching types, passively managed or actively managed, and depending on whether an ETF is passive or active will determine how investments are allocated within an ETF.

So now you know that passive ETF investing is a good strategy but to actually get started with investing in ETFs, well you need to actually do this via the stock market. Hence the name Exchange Traded Fund. And in order to start investing via the stock market you need to sign up for a stock brokerage account.

Now that you have a brokerage account and have access to the stock market, all you need to do is deposit your funds into your account and then decide which ETFs to buy. Now there isn’t a single best way to do this but one of the most popular strategies is using this thing called the 3 fund portfolio. The 3-fund portfolio is a portfolio modelled on the idea of maximizing simplicity, diversification, and flexibility. The simplicity allows you to understand and manage your own investments, the diversification helps you lower the risk of any single asset's under performance becoming catastrophic, and the flexibility allows you to set an allocation that suits your circumstances and financial stage of life.

So now you know how to actually get started with ETF investing in Australia, however like I mentioned it must be a long term strategy, and as part of a long term investing strategy you need to hold and keep buying more units of the ETFs over time. This is currently my strategy and every month I purchase more units of ETFs because I totally recognize the benefit of the diversification and the stability of doing this long-term for a relatively low cost.

[callumfrank]

Great video Michael, one that folks really need to watch. I’m 53, retired a while at 45 and through the years I have learnt the importance of having multiple income streams. I have 25% of my capital invstments in an ART, 35% in index funds, and the balance spread across other investment accts which produce a cumulative of over $ 1.3M for me annually. Zero debt and all is going well, my financial consultant has been my number one help in achieving all this throughout the years.

[greenquake]

'I cannot over emphasize the importance of being an experienced trader to make good returns off the market space, else you'd join the group that call it a gamble. Those that understand the market trends are always a step ahead and apply adequate measures to stay secure no matter the situation".

[waltermartinelli]

Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments.

[liamjohn]

Channeling funds to the right ventures can send anyone on their way to leaving the workforce early, retirement isn’t in age, it’s in financial numbers.

[MaryPatricia-wrwj]

After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?

[kathleenstoner.n]

Legends to embrace if you want to get rich investing Mike and Gary Joe Wilde.

[tracyfortune]

I'm 60 & now on my own. Living w/son, so don't have to worry too much about housing costs. As a longtime home maker, I only have 12k super, but have 70k savings, earning nothing. I make about 12k a year working PT (self-employed) after MVA left me unable to work FT. I have not touched my savings in 12 years. It just earns nothing now, and I don't have "long-term" as youngsters starting out. Is it too late to start investing? Where would you go if you were me? I know it's only iyho, but I'm at a loss?

[Red-jt]

I am aware that continuing to invest during periods of volatility can be a smart way to build wealth. I’ve heard testimonies of people accruing over $250k this red period. What measures can I take to ensure this?

[williams]

*I FEEL LIKE THE HOLE SEASON IS OVER, I'M TRYING TO GET INTO TRADING AS A ROOKIE, BUT I'VE HAD SO MUCH LOSS TRYING TO TRADE ON MY OWN, PLEASE WHAT STRATEGIES DO I NEED TO EARN PROFITS FROM THE MARKET*

[patriciacleveland]

Do you use Aixprobot interface? Heard it's one of the best Ai-driven trading interfaces, and that it uses Artificial intelligence (AI) algorithm, to generate very high trading dividends for its users who get to do nothing because the whole trading session is fully automated.

[mayacho]

What're your thoughts on a good ETF that you would hold to go along with QQQ in an IRA? I still have a long way to go. Don't mind risk. But is there an etf in here you like in addition to QQQ that covers different sectors?

[inthetrencheswithcas]

Hey mate, started a ETF A200 last year for my 10 year old daughter and as a Army Veteran I sleep better at night knowing I am building her future passively for her while she loves her life journey through play, respect and adventure…
Thank You

[sweetpotatey]

Dude, you have got to be the best source of info for people newly looking into this. You make it so easy to follow. Thanks for your efforts!

[emmadtennis]

Your videos are so easy to understand for a newbie like me. Your last video was 2yrs ago. Pls make more! 😂

[laneydessie]

So informative and easy to understand. I’ve watched so many YouTube videos to grasp the concept of trading and ETF’s but this is hands down one of the best one’s 🙌🏾

[aswinivayyala]

Brilliant video..answered pretty much all questions a beginner inverstor would have..Thanks

[platinum_oh]

Great video. Very informative content and a great delivery style.

[benburrowes]

Excellent, you have put ETFs in terms that I understand. Thanks 👍

[frankbellio]

Thank you so much for doing this video Michael. The best 20min education I've received of late. Well worth the watch, and yes, I subscribed whilst watching your video. One topic I think you might also like to cover is other side of making money. I.e. Paying tax. Whilst I know this is more of a topic for an accountant, I'm sure you've already had to tackle this issue of paying tax on profits and CGT if you've sold any part of your portfolio. So, could you talk about whatever you have encountered on the topic of tax and any suggestions/advice for ETF investors. Again, great video and thank you.

[fifis]

Thank you so much for such a simple expaination. I've made some good realestate choices and have a chunk of cash I need to put to work.