Australian Investment in US Markets

Jun 14, 2025

Summary

  • The meeting focused on the simplest ways for Australians to invest in the S&P 500 and US stock markets, with a comparison of popular ETF options and step-by-step investment guidance.
  • Key factors discussed included ETF selection, management fees, diversification, expected performance, and practical investing steps using the Pearler app.
  • The speaker clarified the types of ETFs available, highlighted their differences, and stressed the importance of understanding costs and investment structures.
  • General advice was provided; for personal financial advice, attendees were encouraged to consult a licensed adviser.

Action Items

  • No specific tasks, deadlines, or owners were assigned during this session as it was primarily a presentation.

Investing Options for Australians

  • Three main methods to invest in the S&P 500 from Australia: ASX-listed ETFs (e.g., IVV, SPY), US-listed ETFs via brokerage apps (e.g., VOO, SPY), and managed funds (higher fees).
  • ASX-listed ETFs allow investing in AUD without currency exchange fees; US-listed ETFs require currency conversion and a W-8BEN tax form.
  • Managed funds are accessible but typically come with higher fees than ETFs.

S&P 500 ETF Comparison

  • Compared three major S&P 500 ETFs: IVV (ASX), VOO (US), and SPY (ASX & US).
  • Management fees: IVV (0.04%), VOO (0.03%), SPY (0.09%).
  • 5-year average annual returns: IVV (14.96%), VOO (14.92%), SPY (14.90%).
  • Dividend yields are similar across all three; all are highly liquid.
  • VOO offers the lowest management fee but is only available on the US exchange.

Alternative US ETFs

  • VTS (Vanguard US Total Stock Market ETF): Invests in ~4,000 US companies, offering greater diversification at a low management fee (0.03%).
  • NDQ (BetaShares NASDAQ 100 ETF): Focused on the top 100 NASDAQ technology companies; less diversified but offers greater tech exposure; 5-year average annual return is 2.19%.

Practical Investing Steps with Pearler

  • Step-by-step demonstration of purchasing both ASX- and US-listed ETFs via the Pearler app.
  • Instructions included selecting the ETF, entering the investment amount, and placing the order.
  • Pearler gives direct access to both Australian and US markets, but US investments require handling currency exchange and tax forms.

Decisions

  • No formal group decisions were made; this session was informative and instructional.

Open Questions / Follow-Ups

  • None noted; attendees were referred to the video description for the full financial services guide and to contact a financial adviser for personal questions.