Why I love ETF investing

I think that investing in ETFs is a really effective way to grow wealth. I’m going to tell you a few points about why I really like exchange-traded fund (ETF) investing.

Over time I believe that more and more investing will be done through ETFs because of how easy it is.

These are some key reasons why I’m attracted to ETF investing.

Hardly takes up any time

The amount of time it takes to invest in an ETF isn’t much at all.

I don’t know if you’ve been through the process of trying to buy a property but it takes quite a lot of time to look for properties and inspecting them (plus the building and pest inspection costs). Even buying a property takes a long time (and add in all of the costs like stamp duty).

Buying an ETF is as easy as just putting an order through an online brokerage account and then that’s it.

Owning ETFs doesn’t take up much time either. There’s no tenants to deal with. No problems at the property that need your attention to fix. And so on.

If you don’t sell them then tax return time is pretty easy too – the dividend and distribution information is normally available from the ATO with prefill.

Usually good returns

Over the long-term, the broader share markets of Australia, the US and indeed the world share market have done well.

The average return per year is normally around 10% over long time periods.

These diversified markets can be accessed through ETFs like iShares S&P 500 ETF (ASX:  IVV), Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

There are also more focused or specialised ETFs and indices that have performed stronger such as Betashares Global Quality Leaders ETF (ASX: QLTY), VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT), VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO) and Betashares Cloud Computing ETF (ASX: CLDD).

Lower costs

Many index based ETFs have lower costs than active fund managers. It makes sense – fund managers and shareholders want some/a lot of money too.

Vanguard (essentially) isn’t trying to make a profit from its ETFs, and competitors have to provide a good price compared to Vanguard’s ultra low fees.

ETFs may be able to deliver stronger net returns than fund managers simply because of the lower fees – which is good for us as investors.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

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General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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What can we do better?

Howdy, ASX investor.

I really care about your experience today.

Please, let me know if you have any suggestions we can use to improve our site and help others invest in ETFs. 

Cheers! 

Owen Rask