ETF Investing Australia 2026: Best ETFs, Brokers and How to Start
Updated April 2026 · 11 min read
ETF Investing in Australia: Simple, Cheap, Effective
Australian ETF assets have surpassed AUD 200 billion as investors increasingly recognize the power of low-cost index investing. A single all-in-one ETF gives you exposure to thousands of stocks across Australia and the world for under 0.20 percent per year — compared to 1.5 to 2 percent for typical managed funds. Use our investment calculator to project your ETF portfolio growth.
The One-ETF Portfolio for Australians
DHHF from BetaShares (0.19 percent MER) invests across Australian shares, international developed markets, and emerging markets in a single fund. No rebalancing needed, no stock picking, no market timing. Buy regularly, hold for decades, and let compounding do the work. For those wanting a small bond allocation, VDHG (0.27 percent MER) includes 10 percent defensive assets.
Franking credits give Australian ETFs a unique advantage. A200 (BetaShares ASX 200, 0.04 percent MER) pays fully franked dividends — the 30 percent company tax already paid reduces your personal tax. For investors in the 19 or 30 percent bracket, franked dividends are exceptionally tax-efficient. Plan your portfolio with our compound interest calculator and retirement calculator.
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Frequently Asked Questions
What is the best all-in-one ETF in Australia?
DHHF (BetaShares Diversified All Growth, 0.19 percent MER) for 100 percent equities. VDHG (Vanguard Diversified High Growth, 0.27 percent MER) for 90/10 growth/defensive. Both provide global diversification in a single fund with automatic rebalancing.
Which broker should I use for ETFs in Australia?
For low cost: CMC Markets (AUD 0 brokerage up to AUD 1,000 per day), SelfWealth (AUD 9.50 flat per trade), or Stake (AUD 3 per trade). For features: CommSec or Nabtrade. For beginners: Raiz or Spaceship for micro-investing.
How are ETF returns taxed in Australia?
Distributions (dividends and capital gains) are taxed at your marginal rate. Australian-domiciled ETFs pass through franking credits. Capital gains on selling after 12 months get a 50 percent CGT discount. Hold inside super (15 percent tax) for maximum tax efficiency.
What are franking credits?
Franking credits represent tax already paid by Australian companies on their profits. When you receive a franked dividend, you get a credit for the company tax (30 percent) already paid. This can significantly reduce your personal tax on dividends or even generate a refund.
How much should I invest in ETFs?
Start with whatever you can afford — even AUD 100 per month through micro-investing apps or AUD 500 per month through a broker. Consistency matters more than amount. AUD 500 per month invested at 8 percent for 30 years grows to approximately AUD 745,000.