Big idea: You can invest tiny amounts into a managed fund that track popular ETFs (micro-investing), or you can buy ETFs directly on the share market. Both are great — they just suit different people and different stages.
Understanding the differences and benefits helps you understand what may suit you best.
Option 1: Micro investing
Micro-investing lets you start with very small amounts — even $5.
Your money goes into a fund that tracks popular ETFs. It's a simple option for anyone who wants to invest, but doesn't know where to start.
Great for:
- beginners
- people starting with smaller amounts
- those building confidence
- anyone wanting automation + simplicity
Key features:
- invest tiny amounts
- Round-ups your purchases
- easy automation
- instant diversification with ETF-tracking managed funds
- no need for $500 minimums
- monthly fee instead of brokerage
- super low barrier to starting
Option 2: Investing in ETFs directly
When you buy ETFs on the ASX, they’re CHESS-sponsored — meaning the investments are held directly in your name.
Great for:
- people comfortable investing $500 or more at a time
- long-term investors wanting control and direct ownership
- those who prefer paying brokerage instead of a monthly fee
Key features:
- $500 minimum per ETF trade
- pay brokerage per buy
- you control when and what you invest in
- may be more cost-effective once contributions are larger
- direct ownership over the shares / ETFs
Simple comparison
Micro-investing
- start with $5
- no trade minimum
- monthly fee
- great for building investing habits
Direct ETFs
- minimum $500 per trade (ASX rule)
- brokerage fee per trade
- CHESS-sponsored
- more control over investment options
So which one is “better”?
Neither — they just serve different phases of your journey.
If you want to start small:
Micro may suit your needs.
If you can invest $500 at a time:
Direct ETFs may be better suited you.
If you’re unsure:
You can do both — many people begin with Micro and shift to ETFs later.
Why should I care?
Because understanding these two options helps you start investing immediately — instead of waiting until you have 'enough.' Or spending too much time deciding between the options, and therefore never investing.
The goal should be to figure out what suits you best, get started, and learn along the way.
Try this today
Ask yourself:
“Would I rather start small and build a habit, or wait until I have $500 saved for my first ETF?”
