For most Australian retail investors, ASX-listed ETFs are the most accessible and cost-effective way to add alternative asset exposure to a portfolio. This guide covers the major alternative ETFs available on the ASX — gold, commodities, cryptocurrency, infrastructure, and income-focused covered-call ETFs — with key details to support your research.
Why Add Alternatives via ETFs?
Traditional share and bond portfolios (e.g., VAS + VGS + VAF) carry concentrated market risk. Alternative ETFs can provide:
- Inflation protection (gold, commodities, infrastructure)
- Crisis diversification (gold, market-neutral strategies)
- Different return drivers (cryptocurrency, commodities)
- Enhanced income (covered-call ETFs)
ETFs make these exposures accessible without the complexity of directly owning physical gold bars, futures contracts, or cryptocurrency wallets.
Gold ETFs
| ETF | Exposure | MER | Notes |
|---|---|---|---|
| PMGOLD | Perth Mint Physical Gold | 0.15% | Backed by Commonwealth Government guarantee on gold held at Perth Mint; lowest cost |
| GOLD | Global X Physical Gold ETF | 0.40% | Physically backed; gold held in London vaults |
| QAU | Betashares Gold Bullion ETF | 0.59% | AUD-hedged — removes currency exposure |
| GDX | VanEck Gold Miners ETF | 0.53% | Gold mining companies — not physical gold; higher volatility, leveraged to gold price |
Portfolio role: Inflation hedge, crisis buffer, safe haven. Typical allocation: 3–10% of portfolio.
Tax note: Gold ETFs are CGT assets — 50% discount after 12 months. No GST on investment-grade gold.
Commodity ETFs
| ETF | Exposure | MER | Notes |
|---|---|---|---|
| QCB | Betashares Commodities Basket ETF (ex-agriculture) | 0.69% | Oil, metals, gold via futures; AUD-hedged |
| CMOD | Global X Commodities ETF | 0.65% | Broad commodity basket |
| OOO | Betashares Crude Oil Index ETF | 0.69% | Oil futures; AUD-hedged |
| MVR | VanEck Australian Resources ETF | 0.35% | ASX-listed mining and energy companies; includes dividends |
| QRE | Betashares Australian Resources Sector ETF | 0.34% | Similar to MVR — ASX resources equities |
Important note: Commodity futures ETFs (QCB, OOO) may underperform spot commodity prices due to futures roll costs — read each fund’s documentation carefully.
Portfolio role: Inflation hedge, diversification from financial assets. Higher risk/volatility than gold.
Cryptocurrency ETFs
| ETF | Exposure | MER | Notes |
|---|---|---|---|
| EBTC | Global X 21Shares Bitcoin ETF | 0.59% | Direct Bitcoin (BTC) exposure — physically backed |
| EETH | Global X 21Shares Ethereum ETF | 0.59% | Direct Ethereum (ETH) exposure — physically backed |
| CRYP | Global X Crypto ETF | 0.65% | Shares in crypto companies (Coinbase, miners) — not direct crypto |
Portfolio role: Highly speculative — not suitable as a core allocation. High volatility with potential for significant capital loss. If included, most frameworks suggest limiting crypto to 1–5% of portfolio.
Tax note: ATO treats crypto ETF disposals as CGT events — same as direct crypto. Record all transactions.
ASIC note: ASIC classifies cryptocurrencies as speculative assets and has issued investor warnings about high risk and volatility.
Infrastructure ETFs
| ETF | Exposure | MER | Notes |
|---|---|---|---|
| GLIN | Global X Global Infrastructure ETF | 0.47% | Global listed infrastructure — utilities, toll roads, pipelines, airports |
| VBLD | Vanguard Global Infrastructure Index ETF | 0.47% | Similar — global listed infrastructure |
Portfolio role: Stable income, inflation linkage, diversification. Often used in retirement portfolios as a bond-like income source with some growth.
Note: These ETFs hold listed infrastructure companies (Transurban, Vinci, National Grid, etc.) — not the unlisted infrastructure assets held directly by super funds. Listed infrastructure is more volatile than unlisted, as it trades with share market sentiment.
Covered-Call (Options Income) ETFs
Covered-call ETFs sell call options over their underlying share holdings to generate extra income — at the cost of capping upside returns.
| ETF | Exposure | MER | Notes |
|---|---|---|---|
| YMAX | Betashares US Equities Strong Bear Hedge Fund (NOTE: Check current code) | varies | — |
| UMAX | Betashares S&P 500 Covered Call ETF | 0.79% | S&P 500 with covered calls — high income, capped upside |
| AYLD | Global X S&P/ASX 200 Covered Call ETF | 0.59% | ASX 200 with covered calls — enhanced yield |
| QYLD | Global X Nasdaq 100 Covered Call ETF | 0.48% | Nasdaq 100 covered calls |
Portfolio role: Income generation — suitable for investors prioritising regular distributions over capital growth. The income is partially a return of capital in some periods — review fund distributions carefully.
Tax note: High income distributions may be taxed at your marginal tax rate — less suitable inside taxable accounts for high-income earners.
A Sample Alternative ETF Allocation
A conservative alternative allocation within a diversified portfolio:
| Asset | ETF | Sample allocation |
|---|---|---|
| Gold (physical) | PMGOLD | 5% |
| Broad commodities | QCB | 3% |
| Global infrastructure | GLIN | 5% |
| Cryptocurrency (optional) | EBTC | 1–2% |
| Total alternatives | 13–15% |
The remaining 85–87% would typically hold Australian shares (VAS), global shares (VGS), and bonds/cash.
This is illustrative only — appropriate allocations depend on individual circumstances, risk tolerance, and investment goals.
Comparison: Alternatives ETF at a Glance
| Category | Lowest cost ETF | Key risk | Income? |
|---|---|---|---|
| Gold | PMGOLD (0.15%) | Price volatility, no income | No |
| Commodities | MVR (0.35%) | Commodity price volatility, roll cost (futures) | Yes (mining dividends) |
| Cryptocurrency | EBTC (0.59%) | Extreme volatility, speculative | No |
| Infrastructure | GLIN (0.47%) | Interest rate sensitivity, listed volatility | Yes (distributions) |
| Covered calls | AYLD (0.59%) | Capped upside, complex tax | Yes (high) |
Related Articles
- Gold Investing Australia
- Commodities Australia
- Cryptocurrency Investment Australia
- Unlisted Infrastructure Australia
- ETFs Australia
- Alternative Investments hub
Frequently Asked Questions
What is the best gold ETF in Australia? PMGOLD is notable for its low MER (0.15%) and Perth Mint/Commonwealth Government backing. GOLD (0.40%) is widely held and physically backed. QAU (0.59%) suits investors who want currency-hedged gold exposure. The best choice depends on whether you want the lowest cost, currency hedging, or specific counterparty characteristics. General information only.
Is there a commodity ETF on the ASX? Yes — QCB (Betashares Commodities Basket, 0.69% MER) provides broad commodity futures exposure (oil, metals, gold) in AUD-hedged form. CMOD (Global X, 0.65%) is similar. MVR and QRE provide commodity exposure via ASX-listed mining and energy companies with dividends and franking credits.
Can I invest in Bitcoin via an ASX ETF? Yes — EBTC (Global X 21Shares Bitcoin ETF) provides direct Bitcoin exposure via the ASX. It holds actual Bitcoin in custody. EETH is the equivalent for Ethereum. CRYP holds shares in cryptocurrency companies (not direct crypto). ATO treats all as CGT assets — every disposal is a taxable event.
Peakifi may receive compensation from financial products mentioned. This article provides general financial information only and does not constitute a personal recommendation to invest in any specific ETF. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.