Diversify your portfolio with ETFs

 An ETF, or Exchange Traded Fund, is an investment that gives you exposure to tack the performance of a group of assets, such as shares, bonds or commodities, through a single trade. ETFs trade on major stock exchanges like company shares, making them easy to buy and sell during market hours. 

Many investors use ETFs to diversify their portfolio and gain exposure to various sectors, themes, indices or global markets. 

With over 10,000 ETF’s available on our platform, you’ll be able to find one that tracks industries, regions or markets that interest you. 

CMC Invest provides access to more than 15,000 ETFs across Australian and 15 international markets, including over 400 ASX-listed ETFs and more than 6,500 US-listed ETFs.

Some ETFs are designed to track major indices such as the ASX 200 or S&P 500, while others focus on areas such as global technology, healthcare or emerging markets.

This gives you access to a wide range of investment opportunities across broad markets, including index ETFs (like ASX:VAS and ASX:IVV), thematic ETFs (like ASX:HACK for cybersecurity), ethical ETFs, regional ETFs, and crypto ETFs. Learn more about stock screeners here. 

ETFs are often considered beginner-friendly because they can provide diversified exposure through a single investment. Rather than choosing individual companies, many ETFs give you access to a broad range of investments such as Australian shares, global markets or specific sectors.

They can also offer a lower-cost and simpler way to start building a portfolio. 

As with all investments, ETFs can carry risks and may result in losses, so it is important to read the disclosure document, including the PDS, FSG, and TMD  and consider seeking independent advice before investing. 

When you buy individual shares, you are investing in a single company. This means your investment performance is closely tied to how that company performs. 

Most ETFs, on the other hand, can provide exposure to a group of investments through a single trade. Depending on the ETF, this may include broad market exposure, specific sectors, commodities, international markets or investment themes. 

Because many ETFs hold multiple investments, they are often used to help diversify a portfolio. However, some ETFs may be more concentrated or higher risk depending on their investment strategy and underlying assets.

Most ETFs can provide a simple and lower-cost way to build a diversified portfolio. Rather than investing in a single company, many ETFs give you exposure to a broad range of investments through one trade. This can help reduce the impact of any one company performing poorly, while making it easier to invest across sectors, industries or global markets. 

Many ETFs are also designed to track an index, which can result in lower management costs compared to some actively managed ETFs. 

However, some ETF may track the daily performance of a single company’s stock rather than a diversified index. and may not be suitable for all investors, given the heightened risk of single-stock exposure.

Like all investments, ETFs can rise and fall in value and may not be suitable for all investors. 

The value of an ETF is influenced by the performance of the underlying assets it holds. If the market index, sector index or individual investment the ETF tracks falls in value, the ETF will generally fall in value as well. 

Some ETFs may also carry additional risks depending on the type of asset class they invest in. For example, international ETFs can be affected by currency movements, while sector or thematic ETFs are likely to gain exposure to the performance of specific industries such as technology or healthcare, in addition to the generic market risk.  

It is important to read the relevant disclosure documents and understand an ETF’s investment objective, underlying holdings and risks before investing.  

Australian ETFs can be traded with $0 brokerage* on the first buy order up to $1,000 per ETF, per day.  International ETFs traded on eligible markets, including the US, UK, Canada, and Japan also offer $0 brokerage**. 

While brokerage may be $0 in certain cases, you should still consider other costs when investing in ETFs.

*Once per security, per day. Excludes margin loan settled trades. 
** FX Spreads apply.

No. ETFs allow you to start with relatively small amounts, and certain brokerage-free conditions (like sub-$1,000 trades) make it more accessible for beginners. 

Opening an account is easy. You'll need a valid photo ID, and an Australian bank account to fund your account. Once approved, you can transfer funds and start investing in ETFs straight away. 

Once your account is funded, you can search for an ETF on the web platform or mobile app, review the ETF details, and place your trade in the same way you would buy shares. 

CMC Invest provides access to a wide range of Australian and international ETFs across sectors, markets and investment themes. 

Yes. CMC Invest is CHESS-sponsored, which means your ASX ETF holdings are held in your name on the ASX's clearing system (CHESS) - not held by CMC on your behalf. This gives you direct ownership of your Australian investments and an extra layer of protection.