Why Think About ETFs for Your Kids?

I’ve got two portfolios - One for me and one my kids (that I have never told them about…). So if you’ve ever thought, “I should really start saving for the kids”, you’re not alone.

Many Australian parents are turning to ETFs as a simple, transparent, and tax-efficient way to invest for their children’s futures — whether that’s education, a first home, or giving them a financial head start.

Step 1: Define the Goal and Time Horizon

There’s a few options here back basically the longer your timeline, the more growth-focused you can afford to be.

Under 5 years: Stick with low-volatility bond or cash ETFs.
5–10 years: A mix of Aussie shares (e.g., VAS) and global shares (VGS or DHHF) can work well.
10+ years: Lean into growth ETFs (like IVV, IOO, or thematic ones like ACDC) since short-term volatility matters less.

Tip: Create separate “buckets” for each child’s goal using different brokerage accounts or labels in your portfolio tracker.

Step 2: Choose Simple, Broad ETFs

Less is more when you’re building a long-term family portfolio. You don’t need to chase every trend.

Australian Market: Vanguard Australian Shares Index ETF (VAS)
Global Market: iShares Global 100 ETF (IOO) or Vanguard International Shares (VGS)
All-in-One Option: BetaShares Diversified High Growth ETF (DHHF)
Bond Option: iShares Core Composite Bond ETF (IAF) - Just incase the shit hits the fan with the shares.

You could even start with a single diversified ETF like DHHF — a perfect “set and forget” option.

Step 3: Automate and Keep Costs Low

The beauty of ETFs is automation.
Set up regular monthly investments using a broker that supports auto-invest (e.g., CommSec Pocket, Pearler, or SelfWealth).

Compounding over 15+ years can turn small deposits into big outcomes. Even $100 a month could grow into tens of thousands by the time your kids are adults.

Step 4: Consider Tax and Ownership

You can invest in your name and simply earmark the funds for your kids — or set up a trust or investment account in their names (some brokers support this).

Keep in mind:

If you invest in your kids’ names, the ATO’s minor tax rates may apply.
Alternatively, investing in your name simplifies tax but requires clear tracking.

Step 5: Make It a Teaching Moment

Involve your kids! Show them how ETFs work, let them track performance, or help them “pick” an ETF theme (like technology or clean energy). It builds financial literacy and ownership.

The Lazy Parent’s Advantage

The best portfolio for families isn’t about chasing returns — it’s about consistency and simplicity.
Pick a couple of low-cost ETFs, automate your investing, and let time do the work.

Future-you (and future-them) will thank you.

How to Build a Kid-Friendly ETF Portfolio