Building wealth with shares and ETFs
When Sarah Chalwell got her first job in 2020, she knew she wanted to make her money work hard for her. “I was working full-time and building up savings,” says the IT sales consultant from Sydney’s Northern Beaches. Despite watching her bank balance grow, a house deposit felt unattainable so she didn’t make home ownership her immediate goal. Instead, she opened a CommSec account.
The first $1000 Sarah invested was split between company shares and exchange-traded funds (ETFs). While the strategy has worked well, substantially growing her portfolio over the past five years, Sarah is now focused on streamlining her investments with a set-and-forget approach. “I’m rebalancing my portfolio to mostly ETFs as I don’t need to think about them as much.”
Over time, Sarah’s confidence has grown. When she first started investing, she often found herself talking to people who boasted about their trading abilities—and their bravado was intimidating. “I eventually realised everyone is figuring it out along the way, just like me.” Now, while she still seeks opinions from people she trusts, “I know I need to do my own research and formulate my own opinions first.”
Choosing ETFs for more financial independence
“I was 41 when I started investing,” says Missy Robinson, a mental-health advocate from Labrador, Queensland. She started because she wanted more control over her financial future. “I’d just gone through a massive life transformation—physically, emotionally and financially—and I wanted to feel more empowered with my money.”
At the time, investing felt like a bold step. “I started with CommSec Pocket and split my first $1000 across four different ETFs.” It was a good intro but as a more seasoned investor now, she wished she’d chosen two and monitored them for longer. “I’m still in the learning phase but I’m feeling much more confident,” she says. “I have experienced some growth but it’s not about massive wins for me. It’s about making smart, consistent choices that build wealth over time.”
“I split my first $1000 across four different ETFs.”
For Missy, being a novice investor hasn’t stopped her from researching different industries and learning the opportunities for investors. “I keep up with investing trends by checking out CommSec market news—it’s great for understanding what’s happening in the markets and staying in the loop.” Right now, she’s interested in tech-based or non-financial ETFs on the US Nasdaq. “I’m focused now and I know what industries I believe in and where I see growth.” She’s also learnt that just because a stock is trending, it doesn’t mean it’s right for her. “I’ve found spreading myself too thin can dilute returns.”
Keeping it simple with dollar-cost averaging
When Mike Day, an audiovisual technician from Tallebudgera in Queensland, started investing, it was all about cryptocurrency. “From there, I got curious about ETFs linked to crypto and firms overseas that were involved in the space.” As his interest grew, Mike began exploring other platforms, like CommSec, and gradually shifted his approach. “I’ve found that dollar-cost averaging works best for me,” he says. “It’s simple: I invest the same amount each week, no matter what the market is doing. It takes the emotion out of it.”
Mike encourages new investors to take time to learn the basics. “There’s a bit of a learning curve but YouTube is full of clear, beginner-friendly videos that explain key terms like market price buying, limit orders and stop losses,” he says. “Understanding those helped me feel a lot more confident.”
“I invest the same amount each week, no matter what the market is doing.”
One practical tip from Mike: if you’re keen to invest in international stocks, make sure you have approval through your CommSec account. “Otherwise, they won’t appear when you search for them,” he says. “It’s worth looking into early on.” Investing, for Mike, is about learning as he goes. “You don’t need to know everything at the start. Get comfortable with the basics and build from there.”
Weighing up the pros and cons
Thinking about putting your money into ETFs or index funds? Christina Pascal, senior financial planner at AIA Financial Wellbeing, breaks down what to keep in mind before you start.
Why they’re worth considering
- Potential for long-term growth: These funds track the market over time, which can offer strong returns if you’re in it for the long haul.
- Access when you need it: Unlike super or term deposits, your funds aren’t locked away—most can be accessed within a few business days.
- Flexible income options: You can choose to reinvest your returns to grow your capital or take them as regular income.
What to be aware of
- Paying taxes: There might be tax implications for your investments. Speak to your tax advisor or accountant or visit the ATO website to learn more.
- No government guarantee: Unlike savings accounts, these investments aren’t covered by the $250,000 government protection.
- Returns aren’t guaranteed: Markets can fluctuate and there’s a change of dips.
“Understand that the markets will rise and fall. Accepting the good with the bad is vital to ensure you are making the most of your investment,” says Christina.
