Shares, ETFs and LICs

Share Trading is a great way to diversify your holdings within ING Living Super. However there are some restrictions and they are as follows:

You can invest up to 100% (subject to the Cash Hub minimum) of your account balance in the Shares investment category (S&P/ASX300 Shares & Tier 1 and 2 Exchange Traded Products).

You can invest between 10% - 50% into one listed security, tiered as per the table below.

Individual limit Aggregate limit
ASX 300 constituents 20% 100%
Exchange Traded Product Tier 1 50% 100%
Exchange Traded Product Tier 2 25% 100%
Exchange Traded Product Tier 3 10% 40%

The Shares investment category of ING Living Super gives you the freedom and control to invest in shares in the S&P/ASX 300 index and a range of Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs).

If you wish to open a share trading account, you can do this once your account has been opened either at ing.com.au or by calling us on 133 464.

Shares

A share represents part ownership of a company. When you buy shares you become a shareholder, which entitles you to dividends (share of company profits) and capital growth (a rise in the share price). Australian listed securities can be bought and sold on the Australian Securities Exchange (ASX). Because the S&P/ASX 300 index is comprised of the top 300 listed companies (by market capitalisation), you have the opportunity to invest in some of Australia's most well-known companies across a range of industries. Further information on the individual securities within the S&P/ASX 300 can be found at asx.com.au.

Investing in shares

High long-term return potential: While they can be volatile in the short-term, historically, Australian shares have earned higher returns than other investments over the longer-term.

Tax-effective income: Many Australian companies pay dividends that come with franking credits. Franking credits reflect corporate taxes that a company has already paid. Your account may be eligible for franking credits upon receipt of a dividend.

Liquidity: Generally, shares in the S&P/ASX 300 can be easily bought and sold on the ASX through the trading day.

Exchange Traded Funds (ETFs)

With ETFs you can access local and international share markets in a single trade. An ETF is traded on the ASX just like any other share but is structured like a traditional managed investment. ETFs generally contain a collection of individual securities and usually represent a particular index.

Investing in ETFs

ETFs can provide a range of benefits for long-term investors including:

Diversification: ETFs provide instant exposure to a diversified portfolio of securities.

Diversification reduces concentration risk in a portfolio.

Cost effective: ETFs are a cost-effective way to invest in a diversified portfolio of shares.

Flexibility: You can generally buy and sell ETFs any time during the trading day at market prices. Brokerage fees apply.

Transparency: ETFs are listed on a securities exchange with market prices quoted throughout the trading day and portfolio holdings are published regularly so you know exactly what they are invested in. While ETFs offer diversification, which can reduce risk, they are still subject to the rise and fall of the market. The level of risk will depend on the types of securities held within an individual ETF's portfolio.

Listed Investment Companies (LICs)

With LICs you can access a diversified range of local and international markets in a single trade. LICs invest in assets in a similar way as a managed investment, but are traded on the ASX just like shares and are taxed as a company. LICs are closed ended professionally managed investments whereby a manager of the LIC invests in a range of assets including shares, property and fixed interest.

Investing in LICs

LICs can provide a range of benefits for long-term investors including:

Diversification: LICs provide instant exposure to a diversified portfolio of securities. Diversification reduces concentration risk in a portfolio.

Flexibility: You can generally buy and sell LICs any time during the trading day at market prices. Brokerage fees apply.

Transparency: LICs are listed on a securities exchange and portfolio holdings are published regularly so you know exactly what you own.

For more information about Shares, ETFs and LICs please see the ING Living Super Product Disclosure Statement and Product Guide available at ing.com.au. Before you invest in Shares, ETFs and LICs you may wish to consult your financial adviser before deciding if these options meet your objectives, financial situation and needs.

Currently approved shares, ETF's and LIC's

Shares, ETF's and LIC's