Key Highlights

  • The fund is about $6.74 billion in size, making it one of the larger ASX Equity ETFs.
  • The management fee is 0.05%, and the listed annual Yield is 3.74%.
  • Financial services and basic materials together make up about 59% of the portfolio.
  • BHP and Commonwealth Bank are the two largest holdings, at 11.23% and 9.18% respectively.

SPDR S&P/ASX 200 ETF (ASX:STW) gives investors passive exposure to the S&P/ASX 200 Index, which covers the largest listed companies on the Australian Securities Exchange. The units were listed at $81.77, the fund is about $6.74 billion in size, and the management fee is 0.05%. Because the index weights companies by size, the portfolio is shaped mostly by the largest banks and resource companies.

Ticker

ASX:STW

Listed price

$81.77

Fund size

$6.74 billion

Management fee

0.05%

Listed annual yield

3.74%

Benchmark

S&P/ASX 200 TR AUD

Holdings

207 companies

How the portfolio is weighted

Financial services make up 33.25% of the fund, and basic materials account for 26.10%. Healthcare sits at 6.92%, consumer cyclical at 6.80% and industrials at 5.98%. The fund holds 97.92% in shares, with a small cash balance.

The largest single holdings are BHP at 11.23%, Commonwealth Bank at 9.18%, National Australia Bank at 4.42%, Westpac at 4.35% and ANZ at 4.19%. The top ten make up 47.29% of the fund, and 95.76% of the holdings are in companies with market values above $1 billion.

Income and costs

The listed annual yield is 3.74%, and the management fee is 0.05%, which is among the lowest in the Australian equity market. Income depends on the dividends paid by the underlying companies, so it can rise or fall with their profits and payout decisions.

The fund's turnover is reported at 7%, which reflects the stability of the index's largest constituents.

Risks to weigh

The main risk is concentration. Banks and resource companies dominate the portfolio, so a fall in either sector can weigh heavily on the fund. Equity prices are also more volatile than bond prices, and the unit price can fall sharply during market sell-offs.

Dividends are not guaranteed, and a cut by one of the largest holdings can affect the yield. Investors who want more diversified sector exposure may find the index's weighting narrower than they expect.

Final Word

The SPDR S&P/ASX 200 ETF offers low-cost, broad exposure to the largest Australian companies. Its portfolio is heavily weighted toward banks and resource stocks, which means its returns and income will follow those sectors closely.