Your super’s going to be with you for a long time. Decades, in fact. And over that time, how you choose to invest it can make a big difference on how much you retire with.

One approach recently gaining popularity is using exchange-traded funds (ETFs) to grow retirement savings . This emerging approach means the decision is no longer about choosing super or ETFs . However, there's another choice to make.

Do you go for a diversified, all-in-one ETF that takes care of everything for you? Or do you build your own mix of individual ETFs to reflect your personal strategy and preferences?

There’s no universal answer here. What works for one person’s super might not suit someone else. So, let’s explore each approach through the lens of super investing to help you decide what makes the most sense for your future.

What does ETF investing inside super look like?

When you invest in ETFs through super , you’re using ETFs as the main ingredients in your retirement portfolio. Instead of relying on a traditional super fund to manage everything behind the scenes, you’re choosing exactly what your super is invested in – through ETFs.

And there are a few reasons people are drawn to this. ETFs are generally low-cost, easy to understand, and come with built-in diversification. They can give you exposure to hundreds (or even thousands) of companies across different countries and sectors – all in a single trade. Plus, they’re transparent. You can see exactly what you’re invested in and track your portfolio with ease.

But it’s worth remembering – this is still super. You can’t access your super money until you meet a condition of release, usually retirement. So even though you’re choosing the investments, it’s still about the long game.

Broadly, ETF-based super strategies tend to fall into two camps:

• The set-and-forget approach , where you choose a diversified, all-in-one ETF and let it do its thing.
• The DIY mix , where you pick a few individual ETFs to build a custom portfolio based on your goals or preferences.

Each approach has its appeal – and its trade-offs. Let’s unpack both.

Option 1: All-in-one diversified ETF

An all-in-one diversified ETF is exactly what it sounds like: a single fund that invests across multiple asset classes. That might include shares (both Australian and international), bonds, and sometimes even a small slice of property or cash.

It’s designed to give you instant diversification in one simple trade. Some all-in-one ETFs even adjust their mix of assets over time, dialling down the risk as you get closer to retirement. This is known as a lifecycle approach, and it can be a handy way to reduce the need for hands-on management.

Potential benefits

• Simple to manage: You’re only dealing with one ETF. No need to rebalance or monitor multiple investments.
• Broad diversification: With one trade, you’re spread across a wide range of assets, sectors, and markets.
• Automatic rebalancing: Many diversified ETFs rebalance regularly to maintain their target mix of growth and defensive assets .
• Set-and-forget friendly: Great if you want a long-term investment that doesn’t need your regular attention.

Potential trade-offs

• Less control: You’re going with the fund’s chosen asset allocation. If you’d prefer more in Aussie shares or less in bonds, you can’t tweak it.
• Not ideal for strong views: If you have a particular take on markets, sectors, or strategies, you won’t have much room to express that.
• Harder to personalise: Whether it’s a focus on sustainability , dividend income, or tech stocks – this one-size-fits-all option may not hit every note for you.

All-in-one ETFs can be a potentially good pick for simplicity and peace of mind. But if you like a bit more say in how your super’s invested, the next approach might suit you better.

Option 2: Customised ETF portfolio

This approach is about building your own mix. Instead of choosing a single, diversified ETF, you pick and combine individual ETFs to suit your personal strategy. That might mean holding one for Australian shares, another for global markets, one for bonds, maybe an ESG ETF , or something sector-specific like robotics or commodities.

You’re in control of how much goes into each investment and how your overall portfolio is balanced between growth and defensive assets.

Potential benefits

• Tailored to your values and goals: Want more exposure to local companies? Prefer ethical investing? You get to decide.
• Thematic or sector tilts: You can lean into specific sectors, geographies, or strategies that you believe in or want to explore.
• Fine-tune your asset mix: You can adjust the balance between shares, bonds, and other asset types to match your risk tolerance .

Potential trade-offs

• More effort required: You’ll need to manage and rebalance your portfolio over time, especially if markets shift or your goals change.
• Overcomplication risk: With more ETFs comes a higher chance of doubling up on similar assets or losing track of your overall allocation.
• Comfort with investing concepts: It helps to understand things like asset classes, diversification, and correlation – or be willing to learn.

This approach gives you flexibility and personalisation. But it also comes with more responsibility. Let’s now compare the features of the two options side-by-side.

How do these approaches compare inside a super fund?

Whether you lean towards simplicity or prefer a more hands-on approach, both strategies can work within a super portfolio. But they offer very different experiences; here’s a direct comparison:

Feature	All-in-one ETF	Custom ETF portfolio
Diversification	High	Depends on ETF choices
Rebalancing	Automatic	Manual (unless outsourced)
Effort required	Low	Medium–high
Control over allocation	Low	High
Customisation	Minimal	High
Overlap risk	Low	Depends on selection
Suited to…	Simplicity-seekers	Hands-on investors

The right approach comes down to how involved you want to be. Next, we’ll explore some questions to consider to help you figure this out.

Things to consider before deciding

Before landing on a strategy, it’s worth taking a step back and asking yourself a few simple – but important – questions:

• How involved do I want to be with my super?
• Do I prefer a set-and-forget strategy or one I actively check in on?
• Do I have strong views on what my super is invested in – like specific sectors or ethical screens?
• Would I rather keep things simple, or customise them to suit my preferences?
• Am I comfortable adjusting my portfolio over time as markets or my goals change?

You don’t need to have all the answers right now. What matters is finding an approach that feels right for you .

And if you’re somewhere in the middle? That’s completely valid too. Some people start with a multi-asset ETF for simplicity, then add a satellite ETF or two to reflect their personal values or interests.

What role does risk play in this decision?

Risk is part of any investment strategy – including super. And while super is a long-term game, the level of risk you take on can still have a big impact on your future balance.

Here’s how risk shows up in both approaches:

All-in-one diversified ETFs

• Built-in balance: These funds usually blend growth and defensive assets (like shares and bonds) in a single package.
• Automatic risk adjustments: Some diversified ETFs reduce risk over time – especially lifecycle funds designed to become more conservative as you approach retirement.
• Less active management: If you’re after a ‘set-and-forget’ option with risk management built in, this approach might feel reassuring.

Custom ETF portfolios

• Full control: You choose your mix of growth and defensive assets – and can adjust it as your goals or market conditions change.
• Greater flexibility: You can take on more (or less) risk depending on your preferences or view of the market.
• More responsibility: Without automatic rebalancing or age-based adjustments, you’ll need to manage your risk level over time.

The relative risk between the two approaches depends on how they’re built. So the question becomes: Do you want your risk managed for you, or are you happy to manage it yourself?

Build your super portfolio your way

As we’ve said, there’s no perfect answer here – only the one that fits you .

If a diversified ETF gives you the confidence to set and forget, that can be a helpful strategy. If building a custom portfolio feels more aligned with your goals or values, that’s just as valid. Consider how much input and control you want and what will help you stay the course.

Super is a long-term investment. Whatever you choose, consistency and clarity matter more than chasing the “best” strategy.

And as always, the most important part is knowing what you’re investing in – and why .