Sector Exchange Traded Funds (ETFs)

Specific sector ETFs work in the same way as all other ETFs, however rather than providing a broad index exposure, they can provide investors with coverage of some of the biggest companies in a specific sector  such as Listed Property from either a domestic or global perspective.

Sector ETFs can also assist investors build their portfolios to allow for increased exposure to certain industries while still achieving a broad diversification across companies.

Currently there are four sector ETFs available to trade on ASX offered by iShares and State Street Global Advisers. 

 The table below lists the ASX code of each sector ETF and its respective underlying strategy.

ASX Code ETF Name Sector Exposure
IXI iShares S&P Global Consumer Staples Consumer Staples The Consumer Staples ETF provides broad -based exposure to the worlds leading providers of consumer staples such as Procter & Gamble, Nestle and Unilever
IXJ iShares S&P Global Healthcare Healthcare The Healthcare ETF provides diversified exposure to global manufacturers of medical supplies, healthcare providers and biotechnology companies such as Johnson & Johnson and GlaxoSmithKline
IXP Global Telecommunications Telecommunications The Telecommunications ETF provides exposure to the world's largest suppliers of telecommunications such as Vodafone and Telefoonica SA
SLF SPDR S&P ASX 200 A-REIT Fund Listed Property The listed property ETF seeks to closely track, before fees and expenses, the returns and characteristics of the S&P/ASX 200 A-REIT (property) Index

Market Making

To help ensure liquidity in the iShares range of sector ETFs, two companies, Citigroup and Susquehanna have been contracted as Market Makers in the iShares listed on ASX. When the Market Makers consistently achieve two-sided markets in the iShares within the maximum spread and the minimum quantity of iShares as tabled, they receive fee rebates.

Bid Price in $AUD for Shares Maximum Spread Minimum Quantity
$25< 15c 1000
>$25-$50 25c 500
>$50-$100 65c 100
>100-$150 100c 50
>150-$200 125c 50
>$200-$250 150c 50
>$250 200c 50