Index Funds: Where to? (ASX and S&P500)

• 

  LemonShapedRock on 12/07/2023 - 20:35

  +1

  I'd go direct with Vanguard. $0 brokerage and the ability to auto invest into your ETF of choice.

  Depends what you want exposure to, but VAS (Australia) and VGS (International) sound like what you need.

  • 

    mrtin on 15/07/2023 - 08:14

    -2

    Op specifically said not ETFs, but index funds.

    • 

      Daniel Plainview on 15/07/2023 - 11:56

      +1

      Fair point - the OP does make the effort to clarify that they want an index fund - but this term is tossed around and can be correctly applied to ETFs or mutual funds so I'd say its more apt to say they want a mutual index fund:
      https://www.investopedia.com/terms/i/indexfund.asp

      Also there are literally indexes for everything - from as mainstream as the S&P500 to emerging markets value small companies etc. So if they want decent advice you might want to nail that down to something more specific.

• 

  SBOB on 12/07/2023 - 21:48

  I do not mean Mutual Funds or ETF's but rather, Index Funds

  But an index fund can be either an ETF or a mutual fund.
  :/
  What study have you done?

  (But regardless I'd just either buy a selected Vanguard etf on any ASX broker or via Vanguard personal Investor directly. VDHG for example is an easy "no thought" option. You can likely mix your own and save a few basis points of fees etc, but sometimes the simplicity of a single regular buy into a diversified option is a better option for some)

• 

  Rako on 12/07/2023 - 22:47

  Vanguard Personal Investor Account is custodian not chess. Custodian means you don't own the shares.

• 

  Ghost47 on 12/07/2023 - 22:47

  +2

  This website is a good starting point.

  I have been using SelfWealth for several years and they're pretty decent but brokerage is $9.50, which was really cheap several years ago but now isn't as cheap. There's also Stake which has $3 brokerage for AU stocks and $3 USD for US stocks, but the charts on Stake are pretty crap and only go back 3 years. You can do most of your trading on Stake and sign up to SelfWealth for the analytics if you want.

  Other than that I've also heard good things about CMC Markets.

  Be sure to use the referral codes here for SelfWealth or Stake (not sure if CMC has referral codes).

  Vanguard is known for having low fees and are pretty good, I own Vanguard ETFs but there's a whole bunch of ETF providers. For instance if you want to focus on the Nasdaq you'd be buying Betashares NDQ, of if you want an ETF that mainly invests in semiconductors VanEck has one, but note that large companies will likely be in other ETFs so you'll have overlap (which isn't a bad thing depending on what you want exposure to).

  I would also pay attention to franking credits and how they can help you to invest in a more tax efficient manner.

  • 

    Daniel Plainview on 13/07/2023 - 07:10

    I agree with @Ghost47 - that is THE website for a novice Australian investor - read it through, make notes and do so again. I know you will currently think you know it all but rest assured you do not.

    From your post I would assume you are very new to trading in equities - which to me is more reason for you to go through things that might sound obvious such as knowing your investment goals & timelines(minimum period the funds will be staying in the assets before you would even consider selling) and equally as importantly doing some of the quizes on finding out your risk appetite.

    Sounds silly but some folks can put all their funds in have it then decrease by 30% over a few months and have no issues - whereas others will put in the same and insist on pulling it out when it goes down 5% over a bad week. You need to know who YOU are and invest accordingly as forcing a round peg into a square hole will just work out badly.

    Respectfully I really do wonder how much reading up you've done over a month if you've not even found the broker you want to use - let alone a very firmed up list of ETF index's or even the specific index you want to follow.

    Thats why I'd say keep reading - as early investors often jump in only then to find out something they had no idea about and want to change midstream, which causes costs, tax implications, admin PITAs etc.

    Sign up for a free account with Sharesight or Navexa (the latter is best value if you want full tax reporting).

    Get all your ducks in a row and THEN start investing - learn how to assess your results properly (i.e NOT just via the results which are often short term & misleading) - stick with proven good investing habits that suit your goals. :-)