Exchange Traded Funds (ETFs) are managed investment funds that trade on Cboe just like ordinary shares. They offer a simple, cost-effective way to gain exposure to a wide range of asset classes, sectors, and markets - both domestic and global.

Cboe Australia's marketplace offers a diverse range of funds, including passively managed ETFs that track specific indices, actively managed ETFs, and single asset ETFs that focus on a specific commodity, currency, or crypto asset.

Cboe Funds trade exclusively on the Cboe Market and are designed to meet the needs of modern investors seeking transparency, liquidity, and innovation.

ETF Advantages

Democratising access to investing

Seamless Trading	Investors buy and sell ETFs in the same way as shares. They're listed on Cboe and can be bought through your existing brokerage account.
Access	ETFs open the door to markets that were once difficult for retail investors to reach - such as global equities, fixed income, commodities and niche sectors.
Diversification	A single ETF can provide exposure to multiple underlying assets, helping to spread risk across a broader investment base.
Flexibility	Investors can take long or short positions, allowing for strategies that benefit in both rising and falling markets.

What to be aware of

All investments carry risk and investors should seek independent professional advice before investing. Generally, higher expected returns come with greater risk and return variability. Consider how the ETF fits within the overall portfolio, and be aware of its specific risks - especially if it targets a particular asset class or investment style.

Market or sector risk	The market or sector the ETF is tracking could fall in value. For example, if the ASX200 declines, the value of your ETF investment will also fall. Some markets or sectors may also be more susceptible to certain risks, such as geopolitical risk or regulatory risk.
Currency risk	If the ETF invests in international assets, you face the risk of currency movements impacting your returns. Some ETFs are 'currency hedged' which removes this risk.
Liquidity risk	Some ETFs invest in assets that cannot be sold quickly and/or efficiently, such as emerging market debt. This can make it difficult at times for the ETF provider to create or redeem securities.
Tracking errors	An ETF's return may differ from the index or asset it's designed to track. This can be due to differences in the assets owned by the ETF and the index it is designed to track, fees, taxes and other factors. This means you could buy or sell when it's not trading at the indicative net asset value (iNAV).
Fund-specific risk	Some ETFs may also carry additional risks, depending on the strategy they use or the assets they invest in. For example, some ETFs may use borrowing or leverage, which may increase risk. To understand fund-specific risks, read the ETF's product disclosure statement and seek independent advice from a professional adviser before investing.

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