Index fund comparisons

We compare Australian share index funds and profile a low-cost Exchange Traded Fund.
 
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  • Updated:6 Mar 2006
 

05.streetTRACKS EFT

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 for more.
 

 

Table: streetTRACKS S&P / ASX 200 fund

Returns as at 31 December 2005 (%) S&P/ASX 200 Index (%)
3 months 3.47 3.56
6 months 13.63 13.9
1 year 22.27 22.83
3 years (pa) 21.26 21.69
Since fund inception
(pa since 31 August 2001)		 13.24 13.63

Investment performance warning

Past performance is not a guide to future performance. Australian shares have had an outstanding run over the last three years, but whether share values continue to rise in the future is highly uncertain.

Table notes

Performance figures were calculated assuming dividends were reinvested. For example, the three-year return shows the average return that would have been received each year.

Source: State Street Global Advisors, January 2006.

Other key features include:

  • Traded on the ASX (you'll need to use a stockbroker to buy or sell units).
  • MER: 0.286%
  • No entry or exit fees but you'll have to pay stockbroker fees.
  • Investment amounts for individual investors start at one unit (market price in March 2006 is around $49).

For comprehensive information on the fund:

  • There's more about ETFs on the ASX website
  • You can find out more about the streetTRACKS 200 ETF by entering its ASX code (STW) in the search box at the ASX website.
  • For more info read the product disclosure statement available at the streetTRACKS website.

* Growth Equities Corporation offers actively managed ETFs traded on the ASX.

This article last reviewed March 2006