How To Reduce the Risk of Investing in Your Favourite Companies
When looking at the ASX 200, there are always winners and losers. The more you diversify your investments across companies, the less susceptible you are to company-specific events that could result in substantial losses. Holding a portfolio concentrated in your favourite 10-20 companies is a good start, but without frequent rebalancing, it’s not unusual for one company to become a large portion of your portfolio.
The SPDR® S&P®/ASX 200 Fund (Ticker: STW), tracks the S&P/ASX 200 Index — recognised as the institutional investable benchmark for the Australian equity market — provides investors with exposure to large, mid, and small cap companies across a broad range of sectors. Holding a core portfolio of Australia largest 200 companies can help you manage your portfolio risk, providing a good foundation from which to add on your favourite companies.
Diversify your investments with Australia’s longest-running exchange traded fund (ETF).
Over 18 years of track record – Australia’s first ETF
Gain low-cost exposure to over 90%1 of the Australian equity market capitalisation in a single transaction — a high level of diversification that can help reduce portfolio risk.
Low-cost access to 200 of the largest companies in Australia for only 0.13% p.a. (or $13 p.a. for every $10,000 invested).3
Capture potential stock price growth opportunities offered by 200 Australian companies across a range of sectors.
Earn potential quarterly dividend income, with franking credits.
Largest ETF in Australia to track the S&P/ASX 200 Index.4
Most traded ETF in Australia in 2019.5
The SPDR Difference
Creating the world's first ETFs1 was just the beginning. From Core Equities and Smart Beta to Fixed Income, we relentlessly pursue new ways to provide solutions to investors’ most complex investment challenges.
Global ETF assets under management 6
The year we launched Australia’s first ETF
Locally-listed ETFs available
Get in touch
Consult your Investment Professional about adding ETFs to your investment plan, or contact us for more information.
Look under the hood
Visit the STW fund page to view its performance information and portfolio holdings.
Explore our insights
Visit our insights pages to access our latest thinking.
1The market capitalisation of the ASX200 relative to the All Ordinaries Index was 93.9% as at the 28 February 2020. Source: S&P Dow Jones
2 Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
3 Source: State Street Global Advisors, as at 2 March 2020. Read the product disclosure document, available at www.ssga.com/au, for the latest fees.
4 Source: ASX Investment Products Monthly Update, as at 31 January 2020.
5 Source: ASX and Chi-X, as at 31 December 2019.
6 Source: Morningstar Direct as of period end 31 December 2019.
Risks associated with equity investing include stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.
Issued by State Street Global Advisors, Australia Services Limited (AFSL Number 274900, ABN 16 108 671 441) ("SSGA, ASL"). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia · Telephone: 612 9240-7600 · Web: www.ssga.com.
State Street Global Advisors, Australia Services Limited (ASL) (AFSL Number 274900, ABN 16 108 671 441) is the issuer of interests and the Responsible Entity for the ETFs which are Australian registered managed investment schemes quoted on the AQUA market of the ASX or listed on the ASX. This material is general information only and does not take into account your individual objectives, financial situation or needs and you should consider whether it is appropriate for you. You should seek professional advice and consider the product disclosure document, available at www.ssga.com/au, before deciding whether to acquire or continue to hold units in an ETF. This material should not be considered a solicitation to buy or sell a security. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF's net asset value. ETFs typically invest by sampling an index, holding a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index. Investing involves risk including the risk of loss of principal. Diversification does not ensure a profit or guarantee against loss. Holdings and sectors shown are as of the date indicated and are subject to change. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future. Sector ETF products are also subject to sector risk and non-diversification risk, which generally results in greater price fluctuations than the overall market. SPDR and Standard & Poor's® S&P® indices are trademarks of Standard & Poor's Financial Services LLC and have been licensed for use by State Street Corporation. The Dow Jones Global Select Real Estate Securities Index is a product of S&P Dow Jones Indices LLC and has been licensed for use by State Street Global Advisors, ASL. MSCI indices, the property of MSCI, Inc. ("MSCI"), and ASX®, a registered trademark of ASX Operations Pty Limited, have been licensed for use by State Street Global Advisors, ASL. SPDR products are not sponsored, endorsed, sold or promoted by any of these entities and none of these entities bear any liability with respect to the ETFs or make any representation, warranty or condition regarding the advisability of buying, selling or holding units in the ETFs issued by State Street Global Advisors, ASL. State Street Global Advisors Trust Company (ARBN 619 273 817) is the trustee of, and the issuer of interests in, the SPDR® S&P 500® ETF Trust, an ETF registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 and principally listed and traded on NYSE Arca, Inc. under the symbol "SPY". State Street Global Advisors, ASL is the AQUA Product Issuer for the CHESS Depositary Interests (or "CDIs") which have been created over units in SPY and are quoted on the AQUA market of the ASX. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors, ASL's express written consent.