Superfund with ETF Investment Option

Hi all,

I would like to know which Super allow users to invest their Super into ETF with direct control on the bundle and whether this is a cost-efficient option. In principle, I would like to invest my super in 3-4 ETFs with exposure to US/Asian/Euro market.

So far, I could only find the member direct option of Australian Super offering such possibility

https://www.australiansuper.com/investments/your-investment-...

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Comments

  • +1 vote

    I found this, may be of help to others

    https://www.canstar.com.au/superannuation/direct-investment-...

    So far it appears to me that Qsuper has lowest cost (assuming a couple of operations per year)

    https://qsuper.qld.gov.au/investments/options/self-invest/fe...

  •  

    Why the hardon for ETFs? Why not just choose The Intl and Au share options. Almost no fees.

    My youngest is in Qsuper. 35% return on Intl shares for the FY just ended. 25% on AU.

    •  

      35% return on Intl shares for the FY just ended. 25% on AU.

      Past performance is no indicator of future performance.

      Actively managed funds have been under-performing index ETFs.

      • +3 votes

        Past performance of ETFs is no indicator of future performance either.

        The equities option within a Super Fund is ridiculously close to an ETF. That's why the fees are so ridiculously low. Nowhere have I suggested trying to pick stocks or use an active fund manager.

      •  

        Past performance is the best lagging indicator of future trends.

  • +1 vote

    A Super Fund is equivalent to an ETF anyway. (aside from not being tradable on the Stock Exchange of course)

    They invest in the Share market across a wide portfolio of stocks to spread the risk.
    Having direct access to fiddle with the actual stocks being bought is not what ETF's are about.

    •  

      ^ this

    •  

      ^^^^^this^^^^^

      •  

        Im confused. Usually the standard fund we get for our super are balanced, growth, etc.
        Are you saying those investing in stocks outside Australia as well not just domestic?

        •  

          Hell yeah!

          My current asset mix (not the actual investment options) is:
          33% Au Equities
          51% Intl equities
          9% "Alterantives" (Property, Infrastructure, Private Equity).
          4% Fixed Income
          3% Cash

          •  

            @brad1-8tsi: with which provider? australia super or other?

            • +1 vote

              @ChiMot: Aware Super

              I have money spread over Growth, Socially Responsible, Int'l & Au equities

  •  

    There are any number of funds out there that enable direct investment in ETFs and other exchange traded assets.

    Do you have any other requirements?

  • +1 vote

    Sunsuper have an index option for Super, the underlying ETF's are Vanguard owned.

    Very cost effective way of managing your own Super. This would what you are after.

    https://www.sunsuper.com.au/advisers/sunsuper-products/inves...

    •  

      thanks

  •  
  •  

    Why not look for a fund that has a more diverse range of assets. Most just invest in Australian shares and a small amount of US shares.

    •  

      Examples?

      •  

        Unisuper (my current fund) allows users to decide their own asset mix between 6-7 asset classes

  • +3 votes

    The good folks at whirlpool has already done the heavy lifting for you and picked Hostplus and Australian Super.

    Which low-fee superfund?
    https://forums.whirlpool.net.au/thread/35pnp8n8

    •  

      thanks

  • +3 votes

    I'm a happy hostplus choiceplus member. Good if you're wanting to use ETFs through a wrap/direct to maximise CGT deferral til pension phase. Downsides are you need a large balance to make this worthwhile, and 20% must remain in their masterfund/pool (funds without this have % fees which eat your returns).

    Some of the 'research' in that whirlpool is wrong. In a masterfund/pool the tax portion of unrealised CGT remains invested. The benefit of ETFs vs managed funds is better CGT deferral from how unitholders enter/exit.

    DYOR or see a professional

    •  

      thanks, lots of great information. Weirdly enough, I can't find a webpage with a fee prospect for this option. If you have anything at hand, I would appreciate to have a look at it. Otherwise, I'll check back later, sounds promising though.

      • +1 vote

        Product guide here https://hostplus.com.au/investment/understanding-your-invest...

        IIRC
        - Flat product fee $250-ish a year
        - Each ETF charges different fees inside the ETF
        - Sliding scale brokerage starting at $20
        - Standard fees apply to the 20% you must hold in the pool products
        - I don't use their death/tpd/income insurance so can't comment

    •  

      Thanks for that! Obviously I will DYOR but do you mind sharing your Hostplus portfolio? At what balance size does Choiceplus becomes optimal from a fees and tax perspective? Cheers

      • +1 vote

        I just have standard ETFs - stw vas ivv vgs

        The benefit is maximised by having the largest possible unrealised gain. So the bigger your balance and the longer you have to age 60 the better.

  •  

    Rest super also has an index fund option with only admin fees

    •  

      The whirlpool link above discussed REST too and concluded (I quote) - "REST which has a misleadingly low 0% MER which is made up by a buy spread of about 0.1%. But finding apples to apples comparison of superfunds performance is incredibly hard and I would appreciate if someone could point me to a spreadsheet which does exactly that.
      Unfortunately ASIC hasn't mandated the trillion dollars superannuation industry to reduce the opacity for Australians to obviate the need for this thread. Hopefully any losses or bankruptcy by a superfund would be backstopped by the federal government if Covid-like drawdowns happen again in the future."

  •  

    Still following, thanks for the contributions.

    How about superhero self trading option?

    •  

      I answer myself: a very hefty % management fee applies to superhero, so it can be easily ruled out from the options