Here's where young Australians are putting their money investing

Young Australians are prioritising their investment portfolios over owning a home: Here’s where they’re putting their money

• Young Australians have revealed their investment strategies
• Most said they invested in global and local ETFs 

By Belinda Cleary For Daily Mail Australia

Published: 01:51, 24 May 2023 | Updated: 02:05, 24 May 2023

Successful young men and women have revealed what’s in their investment portfolios – and it ranges from ETFs to crypto, cars and real estate.

Queenie Tan, a Sydney-based marketing director who specialises in money and budgeting videos, took to the streets to find out what young people are investing in.

The first woman she spoke to admitted she is often cagey when people ask her about investments.

‘This is a fickle question I have avoided answering for a very long time,’ she said.

She then explained she has ‘about 50 per cent in blue chip direct shares’, then 20 per cent in an Australian ETF (exchange traded funds) and another 20 per cent in a global ETF. 

She said she likes to ‘play with’ her final 10 per cent – but didn’t mention any dollar figures.

Queenie Tan has asked young Australians where they are investing their money 

What is an ETF? 

Exchange traded funds (ETFs) are a low-cost way to earn a return similar to an index or a commodity. They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares.

An ETF is a managed fund that you can buy or sell on an exchange, like the Australian Securities Exchange (ASX) or Cboe Australia (CXA).

When you invest in an ETF, you don’t own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets.

ETF units can be created or redeemed to match investor demand. This helps the price of the units to stay close to the net asset value (NAV) of the ETF. This differs from shares in a company or units in a Listed Investment Trust, where the price fluctuates based on investor demand.

The ASX ETF investor course can help you learn more about how ETFs work.

In Australia, most ETFs are passive investments that don’t try to outperform the market. The role of the fund manager of a passive investment is to track the value of:

The value of the ETF goes up or down with the index or asset they’re tracking.

Exchange traded managed funds (also known as ‘Active ETFs’) and exchange traded hedge funds are actively managed investments. For these funds, investment managers may use high risk trading strategies to try to outperform an index.

ETFs can be either physically-backed or synthetic.

ETFs are available for a range of asset classes and individual assets.

These include:

Visit the ASX or CXA websites for the ETFs you can invest in.

Source: Money Smart 

Another woman said she also has ‘a very small amount’ of ETFs, some individual shares and ‘a couple of tried and true ones’. But failed to mention any names.

One man sparked concern when he revealed most of his money is in Netflix, with many people in the comments warning him to ‘get out quick’. 

One man pointed to his Tesla car, which he considers an investment, and said he is interested in global index funds. He also has stocks in Nike and some money in bitcoin, crypto and ethereum.

The next man said he has a few investment properties. He also ‘has businesses’, direct equities and ETFs.

The last woman said she has some ETFs as well as stock in Adore Beauty.

‘You have to support the TimTam which comes with the orders,’ she laughed.

The video seemed popular with Queenie’s fans, however some revealed they have a few less investments of their own.

The young people were more than happy to answer Queenie – with most claiming to have money in ETFs

‘I have a wallet,’ said one man.

‘I have some magic beans and a bottle cap,’ offered another. 

‘Is it just me or are they all speaking another language,’ said another.

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