An Exchange Traded Fund (ETF) is a low-cost, diversified investment you can buy and sell just like a share on the stock exchange. Think of it as a basket of investments - such as shares, bonds or commodities - that gives you exposure to a broad market without having to pick individual stocks or pay for expensive fund managers. It’s simple, transparent and incredibly efficient - making it a favourite among savvy investors looking for control, clarity and value.

One example we see often is a five-ETF portfolio: Australian shares, global developed market shares, emerging markets, Australian bonds, and gold. It’s a mix that delivered 18.2% returns in FY25—well ahead of the 10.4% median from traditional super growth options.

Gold played a leading role—returning 42.5% in the same year and bringing both stability and growth to the mix. Meanwhile, many larger funds ignored gold entirely in favour of complex, illiquid investments like private debt and venture capital.

Over five years, that same ETF strategy delivered 10.9% annual returns—even after taxes and admin fees. That’s still above the big funds’ five-year average of 8.4%.

Why? Fewer moving parts. Lower fees. More transparency. You know exactly what you own—and why. That builds trust in your strategy and makes it easier to stay the course, even during turbulent times like COVID-19 or tariff-driven market swings.

Our clients tell us the same thing: once they understand how ETFs work, they feel confident making long-term decisions. That’s empowerment in action.

It’s no coincidence SMSFs are behind a big part of Australia’s ETF growth. According to the 2025 Vanguard/Investment Trends SMSF Report, ETF allocations in SMSFs have grown to 12%. Among newly created SMSFs, 61% are already using them.

Today’s trustees are younger, more engaged, and managing substantial portfolios—with many in their 40s holding $200,000 to $400,000 balances.

They value simplicity and cost-efficiency, and they’re not waiting for big funds to catch up.

There’s a lingering idea that more complex portfolios are more sophisticated. But the data doesn’t support it.

Over the past 15 years, fewer than 15% of active managers have outperformed the market. Yet big super funds still chase high-fee strategies, justifying layers of consultants, managers, and opaque structures. Last year alone, these funds spent over $12 billion on internal and outsourced investment management.

But complexity often hides cost—and risk. Every extra layer takes a cut from your super. SMSFs, on the other hand, are proving that straightforward, evidence-based strategies can outperform without the noise.