There's just one provider of retail Australian share index exchange traded funds (ETFs), streetTRACKS, which offers S&P/ASX 50 and 200 funds*. The latter invests in securities comprising the 200 index in proportion to their relative weightings. The fund may also hold short-term derivative contracts (futures), which the company says is to lower the risk that the fund outperforms or underperforms the benchmark index, and to achieve its investment aims.
The table, below, compares the ETF's after-fee returns with its benchmark index. Comparing this table with the funds in our fund comparison table
shows that the comparatively low management fee allows ETF investors to track the index more closely than with more expensive unlisted index funds. These performance figures don't take account of stockbroker fees investors would pay. See our fee comparison table