in this video i'll be reviewing the comsec pocket app and why i think this can be a great
platform for the everyday aussie who may be new to investing or wants to keep investing very simple
so if you are a new australian investor who wants to dip their toes in the stock market then this
video is for you my friend i will cover each of the seven etfs this app provides the fees involved
how to set up your account and how to buy and sell these etfs so if you're a new beginner don't feel
intimidated it's actually quite easy to understand i would also encourage you to watch until the end
because i will be writing my thoughts on each of these investment options and which ones i
personally like for beginners so if that sounds good to you let's get started what is going on
my friends my name is brian and today we are talking about the comsack pocket app there's
quite a lot of information to get through in this video so i've left timestamps down below
so feel free to skip to the sections that you're interested in and before we begin i want to say
this video is not sponsored by comsec pocket so this is a genuine honest and unbiased review also
i am not a financial advisor and the information i provide today are for entertainment purposes only
please do your own research or seek the help of a professional if you would like financial advice
for your unique situation so with that out of the way let's begin the comsack pocket app is a micro
investment broker that offers seven different investment options in the form of etfs etf
stands for exchange traded fund which is a type of investment security that tracks a particular index
sector or commodity in simple terms an etf acts like a basket of many stocks that you
can trade on an exchange just like an individual stock so if you buy one share of an etf that one
share represents a small piece of each of the many companies within that etf so you are essentially
buying many companies all in one stock and because you can buy many companies all in one you
are increasing your diversification and in turn reducing your risk so in theory an etf is a safer
investment than buying a shares of an individual company so firstly i will go through the seven
etf options since that's probably what you came for and after that i'll go over other important
things like fees security and how to buy and sell so without further ado let's talk about the first
etf so the first etf on the list is ioz which is the ishares core asx 200 etf our shares who are
owned by blackrock are the investment company that manages this particular etf this etf is nicknamed
aussie 200 and as the name suggests it tracks the top 200 australian companies listed on the asx
i'm sure you can recognize some of these blue chip companies like cba bhp and wu wolves by
the way blue chip companies just means it's a well established and well-known company that has
consistent revenue and stable growth over time if you scroll down you can see their top 10 companies
and how much each of these companies is part of the etf in percentages please note the bigger the
company by market cap the more the etf will invest in so it's not like all 200 companies are evenly
allocated the same percentage no matter their size generally the bigger companies will make up
a larger slice of the pie in this case the top 10 companies make up 46 of the entire etf if you are
interested you can download all their holdings on their website which i'll link in the description
next you have the industry coverage which gives you the percentage of which of the industry the
etf is invested in so you can see that roz is mainly made up of financial services and
basic material companies financial services make up 29 which includes the big four banks
commonwealth westpac anz and nab basic materials make up 24 which includes the big mining companies
like bhp rio tinto and fmg this does make sense because the top companies in australia
are mainly banks and mining companies you can see the remaining industries are made up of healthcare
real estate consumer cyclical industrials among others if we skip ahead we can see the current
price of the etf and how the soccer performed one week ago one month ago one year ago five years ago
and even when it first started so you can go ahead and play around with this if we select all we can
see it started in 2010 and has a healthy looking growth chart until we get to march 2020 which is
of course when the pandemic locked down the world but as you can see we recovered quite quickly from
that which proves the resilience of this etf and asx in general in the next area you will see the
performance returns in the last year this etf has returned about 10 and about 8 on average in the
last two to three years they also state something very important remember that past performance
isn't necessarily indicative of future performance this is a very good lesson to remember when it
comes to stock market investing you should look at the historical price performance as a guide only
generally speaking stocks that track an index like this one does go up in the long term but remember
it is not guaranteed so only invest money that you can afford to lose so moving on if we click
more info about this etf it will show you the management fee they charge for managing this etf
ioz charges 0.09 which is actually quite cheap in my opinion and don't worry if you do decide
to invest in this etf or any other etf for that matter you don't have to remember to physically
pay the fee every year it is automatically deducted from the unit price of the etf itself
it also states that this etf pays a dividend to its investors four times a year a dividend
is basically a small payment a stock makes to its investors as a thank you for continuing
to invest in their stock so in the last 12 months ioz paid 4.49 in dividends for the year i want to
point out that this is a bit high and you should not expect dividends this high every single year
in fact a dividend is not guaranteed and the management team can choose not to pay a dividend
at any given time but generally speaking they will pay a dividend every year the last part
is the risk to consider that comstock pocket has put together these are some generic investing tips
for new investors which i would recommend you have a look at i really like that they've done
this because there are some very important information to know if you are a beginner
it teaches you both the benefits and risks of investing and i would highly recommend you read
it if you're new to investing the second etf is syi which is the spdr australia high dividend etf
as the nickname aussie dividend suggests this etf offers exposure to approximately 40 australian
companies that have a five year track record of consistently paying dividends if you scroll down
you can see the top 10 companies which make up 68 of the entire etf you will notice the largest
three companies bhb rio tinto and fortescue medals are all mining companies which make up 38 of the
etf then you have some familiar names like wes farmers who owns bunnings kmart office works and
many other aussie companies and normally you would have the big four australian banks in this etf
but i'm guessing they are not currently in there because they stopped paying dividends for several
quarters during the pandemic in 2020. i'm guessing this breached the prerequisite of the etf to have
a five-year track record of consistent dividends you will notice that majority of these companies
are well-established companies with predictable yearly revenue which makes them perfect as a
dividend play if you scroll down you'll see the industry coverage as usual we won't stick around
here for too long because we already know that majority of the companies are mining which falls
under basic materials as well as consumer cycle calls and defensive which includes calls and jb
hi-fi if you look at the price history of the stock you'll notice the price hasn't gone up
much in the last 10 years this is because the etf pays a high dividend yield when a dividend
is paid the value is deducted from the stock price so this etf is more appropriate for people looking
for an investment that can produce consistent cash flow rather than consistent growth but please note
this assumes that dividends are reinvested which is why the stock market return is so high which
i'll explain more shortly the last three years average return is about 7.81 which is decent but
again that is assuming you reinvest all dividends the etf charges 0.35 management fee which i feel
is a little bit high but not too unreasonable if you're looking for a dividend investment
the dividend yield for the last 12 months is about 10 i can tell you right now that is quite
high and you should not expect such a high number every year also if the stock price underperforms
it usually produces a higher dividend yield so it could be misleading so if you are interested
in this type of etf i would suggest you do more research on dividend yields and how they work so
you don't fall into the trap of early choosing stocks with high dividend yields the third etf
is io which is the ishares global 100 etf this etf offers exposure to around 100 of the largest
companies in the world did you know the australian stock market only accounts for two percent of the
global stock market investing in io gives you the ability to diversify into the world's best
blue chip companies including apple amazon google johnson and johnson and samsung i'll leave a link
in the description to the full list of the stocks in this etf as well as a fact sheet so you can
learn more about this etf in fact i'll do the same for all seven etfs that comstec pocket provides
so check the description for more information on each of these etfs as you can see in the industry
breakdown this etf is quite tech heavy with 31 of the stocks being technology companies this makes
sense since many of the largest companies in the world these days are involved in tech so it's only
fitting that the best 100 global etf would have a heavy representation of tech stocks and if you
look at the price chart the stock has performed amazingly well since its inception in 2007.
in fact it returned 25 last year and about 17 on average in the last three years this is mainly due
to the rise in tech stocks over the last decade the management fee is point four percent which i
think is a bit pricey but not super unreasonable you are getting a lot of great companies all in
one they also paid about a two percent dividend last year which actually isn't too bad considering
this etf is more like a growth stock rather than a dividend stock the dividends are paid twice a
year if you invest in this etf again if you're interested and want more information on this etf
check out the link in the description the fourth etf is iem which is the ishares msci emerging
markets etf in the stock market world we generally categorize markets into two categories developed
markets and emerging markets developed markets are countries like australia new zealand the us and
the uk emerging markets do not currently have the same economic strength like the countries
i just mentioned but they are in the process of becoming a developed economy this particular etf
offers access to over 800 companies from emerging markets like china taiwan south korea and india
these are countries where the companies are on the rise and could be future blue chip companies if
we look at the top 10 companies they include the taiwan semiconductor company which is the largest
semiconductor chip manufacturer in the world which is a very important component for electronic goods
they also have 10 cent which owns wechat which is the most popular social media app in china
samsung which is a korean electronics company which i'm sure you've heard about and of course
alibaba which is the largest e-commerce company in china and asia for that matter as usual you
can see their industry coverage with quite an even spread of different sectors like tech
financial services and basic materials the price of the stock has been quite volatile
which is matched by the yearly performance the etf actually made a six percent loss last year
and returned about four percent on average for the last three years that's the thing with emerging
markets it is a higher risk higher award type of investment they also charge 0.68 management
fees which to be honest is quite pricey but to be fair other etfs that offer similar products also
charge quite a high fee since it's a bit harder to manage they also paid a dividend of 3 last year so
not too shabby if you're interested in this etf you can find more information in the link below
the fifth etf is ixj which is the ishares global healthcare etf this etf is nicknamed healthwise
and it contains around 100 of the biggest healthcare companies in the world so if you
think healthcare will continue to do well then you may want to consider researching this etf the
last few years has demonstrated the importance of these healthcare companies in combating diseases
and illnesses by continuing to innovate develop and produce treatments this etf includes companies
like united health group johnson johnson and pfizer which is a company i'm sure you've heard a
lot about in the last few years obviously this etf is 100 invested in healthcare industry so we don't
need to cover that for too long the price history shows it has grown steadily since its inception
in 2009. this demonstrates a linear growth in line with the improvement of modern healthcare
the last year returned 20 to its investors and about 11 on average in the last three years
not too bad at all they charge a 0.46 management fee which isn't too bad for this type of etf the
dividend rate was 2.39 in the last 12 months which is quite decent especially if you also factor in
their share price growth and as mentioned before if you want to learn more about this etf you can
click on the link in the description the sixth etf is ethi which is the beta shares global
sustainable leaders etf similar to ishares beta shares is just the company that manages this etf
this etf offers exposure to around 200 of the leading sustainable and ethical companies so to be
in this etf each company is individually assessed and must pass their strict criteria they carefully
choose companies that are climate leaders and exclude companies with significant exposure to
fossil fuels or engages in activities that are deemed to be unethical if you are interested in
learning more on the screening process there is a pdf on their website which goes into more detail
i will leave a link in the description with the world moving towards a more sustainable future
the trend towards responsible investing has grown rapidly studies have shown that ethical investing
is particularly popular amongst millennials with a lot of money flowing into australian sustainable
investment funds in recent years a recent survey of the australian etf market found 28
of younger investors had requested more ethical investments this etf in particular has gained
popularity amongst those who wish to invest in companies that align with their beliefs
some of the top companies in this etf includes nvidia apple visa and toyota which i think is a
surprising inclusion despite being a car company which runs on fossil fuel toyota has made it its
mission to phase out fossil fuel cars with greener options if you look at their price history it has
performed very well since its inception in 2017. it returned 17 in the last year and about 21 on
average in the last three years and as awareness for ethical investing grows so with the popularity
in this etf this etf charges a 0.49 management fee which is quite reasonable for the work they do to
carefully screen their investments and they paid a 1.77 dividend last year which is a bonus to their
impressive share price returns overall it is a very solid investment the seventh and last etf
is ndq which is the beta shares nasdaq 100 etf as the name tech savvy suggests this etf offers
exposure to around 100 of the largest technology and non-financial companies on the nasdaq the
nasdaq is an american stock exchange where people can invest in the largest tech and non-financial
companies if you look at the top companies on the list you can see it is home to well-known tech
giants like apple microsoft amazon tesla nvidia google and facebook which is now known as meta
platforms if you look at the industry coverage you'll see 50 is pure tech stocks but there are
some other industries like communication services such as facebook and google which to be honest i
think should still be classified as tech then you have consumer cyclical and defensive companies
like pepsico costco and starbucks so it is made up of mainly tech and a few other industries
if you look at the price history since inception in 2015 this etf has performed amazingly well for
their investors if you have been following the financial news in the last decade you will know
that u.s tech companies have been on the tear and dominating the stock market this etf returned 18
in the last year and an average of 25 in the last three years these are absolutely phenomenal
returns for an etf which requires very little work to invest in they charge 0.38 management
fees which is very reasonable considering what they have returned to their investors in the last
few years they paid a 0.77 dividend in the last 12 months which is a bit low but understandable since
this is more of a growth etf and most of the gains are expected from the share price appreciation
as always if you want to learn more about this etf then click the link in the description
all right now that we've gone over the seven investment options let's talk about the fees there
are two types of fees you should know about when investing in these etfs first is the management
fees which i've already covered but they are the fees a company charged for managing the etf
these fees are not charged out of pocket and are automatically deducted from the share price
the second is the brokerage fee which is the fee you pay to the broker for buying or selling the
etf comstock pocket charges two dollars brokerage each time you buy or sell one of these etfs up
to one thousand dollars trades over one thousand dollars are charged point two percent of the trade
so for example if you buy twelve hundred dollars of io it will cost you two dollars and forty cents
in brokerage fees this is very cheap when compared to other brokers and it's one of the lowest if
not the lowest fee in australia you can start investing from as little as fifty dollars but to
be honest i would recommend saving up a bit more otherwise those brokerage fees will start eating
into your investments paying two dollars brokerage for a fifty dollar trade means you're paying four
percent of the total investment this means your investment would have to perform very well just
to make up that four percent instead i would aim to only pay a maximum of one percent brokerage
for each trade so since the brokerage is two dollars try to buy at least 200 or higher these
low brokerage fees also allow you to dollar cost average without breaking the bank if you're new to
investing then dollar cost averaging is a strategy of regularly buying the same amount of shares
every week or month regardless of the price since it's basically impossible to time the market this
strategy allows us to get the market average price over time and it's historically been proven to be
a very effective strategy in terms of security it is probably one of the safest platforms because
they are owned and backed by commonwealth bank which is the largest bank in australia so you can
rest assured knowing your shares are in safe hands and even in the unlikely event that something
happens to commonwealth bank the insurance will cover any damages to your investments in addition
comstec pocket is chess sponsored which means they issue you an individual holder identification
number or hin and your shares are registered with chess on the asx this means construct does not own
your shares and they are legally registered under your name which adds an extra layer of security
this also gives you the freedom to move your shares to another broker if you no longer want
to use comsec pocket in the future now let's talk about setting up your comstec pocket account the
entire process is very easy you can search contact pocket in your apple app store or google play
from there you just follow the prompts you will also need to open a commonwealth bank account to
use this app so if you're already a cba customer then great you can get started straight away
if not then you can open an everyday account with them the count is free if you're under 25 years
of age or a part-time or full-time student at an australian educational institution
you also qualify you're undertaking an australian apprenticeship on student options if you're none
of these then you can also get your account for free if you deposit 2 000 in there every month so
like me you could just deposit your paycheck into this account every month and instantly transfer
it out to another account if you want also as a quick fyi because i see this question get asked a
lot in finance forums if you're already a compset customer you will get a separate portfolio for
comsack pocket so it will be your normal comstec account and your comsack pocket account will be
next to it and if you ever want to combine them i've heard it's quite easy to transfer everything
across with a few clicks now let's talk about how to buy and sell these etfs once your contact
pocket account is approved it should then allow you to link it with your commonwealth bank account
if you want to buy something from the comsack pocket app the money will be deducted from your
commonwealth bank account you just need to remember to keep your account funded to at
least the amount that you have bought for example if you buy one thousand dollars of ioz then make
sure you have one thousand dollars in your bank account they will usually deduct the money in two
business days now let me demonstrate how to buy and sell on the app okay so buying and selling
on this app is very easy to do if you want to buy just come to this section on the app and choose
one of the seven options for this example i'll use ioz say you wanna buy one thousand dollars
worth you just enter one thousand dollars then click next and it'll bring you to the screen
now since you have to buy a full unit of the shares it will round off to the nearest unit
in this case you will get 32 units of ioz and it will cost you 997 dollars and 84 cents
including the two dollars brokerage fees if you're happy with that then click invest and the order
should go through instantly and congratulations you just bought some ioz shares now to sell you
will have to bring up the etf you want to sell for this example i will use my ndq shares that
i currently own click sell on the bottom left of the screen then you can select how many units
you would like to sell so in this example i'll put 50 units and it'll bring me to this page
now it's telling me 50 units is approximately 1 500 worth of the etf and the brokerage will
be about three dollars if you're happy with that then click sell and again it should go
through instantly and you've just sold some shares it's as easy as that guys now with all these etfs
they are not just exclusive to compsec pocket you can in fact find them in every broker that
offers asx stocks so for example if you search the ticker symbol on sell forth or perla you can buy
it from these brokers the only difference is the brokerage fee will be much higher
buying one thousand dollars of ios here will cost ten dollars compared to two dollars in concept
pocket app one last thing i want to add before i wrap up this video is to check out this learn tab
on this app i think if you're a beginner it's worthwhile to scroll through these as
they provide very good information in an easy to understand format it gives you tips on how to use
concept pocket as well as some generic investing tips which will make you a better investor in
the future so i highly recommend you go through this tab and learn and absorb as much as you can
because at the end of the day knowledge is power so there you have it guys that is everything you
need to know about comsec pocket app so to give you my final thoughts would i recommend this
platform the answer is yes in my opinion this is a good starting point if you are a new investor
it is a nice sleek design which is easy to use and does not feel too intimidating for
a new investor now you may be asking which each you have to invest in as a beginner
obviously i can't give you direct financial advice since i'm not a financial advisor and i don't know
your personal circumstances but i will say i like ioz io fe and ndq i've actually invested in some
of these in the past and actually still hold one of them until this day which has performed very
well for me there are other etfs out there which are comparable to these and you can do a quick
google comparison to compare their performance and management fees but at the end of the day
for what comstec offers and their low brokerage fees i think these are some
very decent options for new investors once you become a more experienced investor you can
always switch to an online broker that offers more choices and like i mentioned previously
comstec pocket is chess sponsored so you can easily transfer your shares to another broker
if you want to keep everything in one spot so in short i think comstec pocket app is a good choice
but it's not a necessity you can skip straight to another broker that offers more options if you're
interested in learning more about how to invest then check out these videos also please give this
video a like if you enjoyed it and don't forget to subscribe to my channel so you don't miss out
any future content and until next time my name is brian and i hope you make a lot of money you