With 400+ ETFs on the ASX, simplicity has never mattered more

ETFs have taken off in Australia. A decade ago, the choices were limited. Today, there are more than 400. Every week, a new theme arrives. Hydrogen. Defence. Space. Robotics. Even water scarcity and cybersecurity. The range can be exciting, but it can also be overwhelming. More choice often leads to second-guessing. And second-guessing usually hurts long-term results.

Our message at Stockspot has stayed the same since the day we opened 12 years ago. 

Simple portfolios built from broad, low cost ETFs give people the best chance of success. 

You don’t need to hunt for fresh releases. You do not need to twist your allocation because a headline hints at the next crisis. Stick to the basics. They work.

What makes a good ETF (and why it’s enough)

Good ETFs are also far easier to recognise than people think. They share clear traits.

• They’re cheap.
• They track broad parts of the market.
• They’re transparent.
• They have scale.
• They follow solid index rules.

When you own something like that, it can compound quietly for decades. You don’t need more than that.

The hard part: Holding through volatility and noise

What’s much harder is holding them. 

Buying a sensible ETF is simple. Keeping it through the ups and downs is the real challenge. 

Markets never move in a straight line - there are periods when shares fall. When bonds disappoint. When currencies swing. When headlines turn dark. Those moments test discipline. They also tempt people into choices they later regret. 

Investors start chasing hotter themes or shift because someone has a view that sounds clever. 

They read an article warning about passive investing and begin to doubt the calm work done by their core ETFs.

Every portfolio faces these tests. It might be a fund manager with a convincing pitch for their new fund. It might be a new ETF promising to capture a niche trend. It might be a friend boasting about a quick win on dogecoin or a lithium explorer. All of these voices pull you away from what actually drives wealth. Low cost. Diversification. Time. And a consistent plan.

A simple process that has worked for a decade

This is why the 5 core ETFs we recommend haven’t changed in ten years. They have survived bull markets and shocks. COVID. Inflation spikes. Currency swings. Tech booms. Gold rallies. And the slow grind of bear markets. They have done what they were built to do and have helped our five core model portfolios outperform all diversified funds in Australia over the last decade, based on the comparison group we have tracked since 2015. Not a stretch of months. A full decade.

People often ask what the secret is. There is no secret. We apply the same process we did on day one. Own five ETFs. Weigh them according to your timeframe and ability to take risks. Then rebalance in a systematic way. No tactical tilts. No attempts to pick the best fund manager each quarter. No chasing what looks exciting. 

Patience beats cleverness.

5 core ETFs we use

Vanguard Australian Shares Index ETF (ASX: VAS)

ETF

Vanguard Australian Shares Index ETF (VAS)

Australian Shares

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VAS is an exchange-traded fund that seeks to track the performance of the S&P/ASX 300 Index, providing exposure to a broad range of Australian listed companies across large, mid and small capitalisations. It is one of the largest ETFs listed on the ASX and has been available since 2009. The fund has a management fee of 0.10% per annum and is commonly used as a benchmark representation of the Australian share market.

iShares Global 100 ETF (ASX: IOO)

ETF

iShares Global 100 ETF (IOO)

Global Shares

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IOO is an ETF that tracks the S&P Global 100 Index, providing exposure to 100 large multinational companies from developed markets. Holdings span regions including North America, Europe and parts of Asia, with sector exposure across technology, healthcare, consumer goods and financials. IOO has been listed on the ASX since 2007 and has a management fee of 0.40% per annum.

iShares MSCI Emerging Markets ETF (ASX: IEM)

ETF

iShares MSCI Emerging Markets ETF (IEM)

Global Shares

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IEM provides exposure to equities listed in emerging markets by tracking the MSCI Emerging Markets Index. The fund includes several hundred companies across countries such as China, South Korea, Taiwan, India and Brazil, covering a range of sectors. IEM has been listed on the ASX since 2007 and has a management fee of 0.69% per annum.

iShares Core Composite Bond ETF (ASX: IAF)

ETF

iShares Core Composite Bond ETF (IAF)

Australian Fixed Income

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IAF is an ETF that tracks the Bloomberg AusBond Composite 0+ Yr Index, which includes Australian government, semi-government and investment-grade corporate bonds. The fund provides exposure to a diversified portfolio of fixed income securities across a range of maturities and credit qualities. IAF has been listed on the ASX since 2012 and charges a management fee of 0.15% per annum.

ETFS Physical Gold ETF (ASX: GOLD)

ETF

Global X Physical Gold (GOLD)

Alternative Assets

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GOLD is an exchange-traded fund that provides exposure to the price of gold through physical bullion held in secured vaults in London. The fund is not currency-hedged, meaning returns are influenced by both movements in the gold price and the Australian dollar. Listed on the ASX since 2003, GOLD is one of the largest physically backed gold ETFs in Australia and has a management fee of 0.40% per annum.

Simplicity still wins, even as the ETF market evolves

Investing is already emotional. Markets wobble. Media commentary gets loud. Someone at work shares a tip. In those moments, having simple rules matters. You take the noise away. You stay focused on saving more. Keeping costs low and letting time do the heavy lifting.

The rise in ETF listings doesn’t mean you need to upgrade constantly. New products might be interesting - and some might even be useful around the edges. But broad ETFs that track major share markets, bonds and gold should remain the backbone. They capture global growth. They cushion downturns. They are reliable building blocks. They’re also the reason our portfolios have delivered for clients over many years.

Every quarter, someone predicts the decline of passive investing. These narratives have been around for decades. They appear when markets wobble. They disappear when markets recover. But the data barely changes. Most active strategies lag over longer periods. Costs eat returns. Turnover adds drag. And timing markets is almost impossible!

So if you are staring at a long list of ETF codes, you can simplify the task. Ask what you need exposure to: Australia. Global shares. Bonds. Emerging economies. Gold. There are proven ETFs that do all of this with low fees and clear index rules.

Pick them. Set sensible weights. Rebalance. Add savings regularly. Stay invested. 

Over time, the simplicity becomes powerful and is how real wealth is built.