Buy Hold Sell: 7 ASX growth strategies with <0.10% fees

In investing, every basis point counts. Keeping costs low is one of the simplest ways to boost long-term returns, and some of the best-performing ETFs and LICs charge less than 0.10% in annual fees, proving that strong performance doesn’t always come with a high price tag.

In this episode of Buy Hold Sell, we’re going bottom-fishing for the cheapest funds on the ASX. Joining us to break down the best rock-bottom-fee strategies are Charlie Viola from Viola Private Wealth and Adam Dawes from Shaw and Partners.

Are these low-cost funds worth the hype? Let’s find out.

This video was filmed on 13 March 2025. Management expense ratios (MER) - the annual fees of each fund - have been listed below.

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Edited Transcript:

Vishal Teckchandani: Welcome to Buy, Hold, Sell. My name is Vishal Teckchandani, and in this episode, we're tightening the purse strings and putting on the cheapskates. Smart investors know that keeping costs low is one of the best ways to maximize returns. That’s why we’ve scoured the ASX to find some of the best-performing ETFs and LICs that charge less than 0.1%. That’s right, you heard it here first - proving that you don’t need to pay champagne prices for caviar returns.

Joining me to uncover and assess these rock-bottom-fee strategies are Charlie Viola from Viola Private Wealth and Adam Dawes from Shaw and Partners. Gentlemen, welcome.

Vanguard U.S. Total Market Shares ETF (ASX: VTS) - 0.03% MER

Vishal Teckchandani: Okay, let’s kick things off. The Vanguard U.S. Total Market Shares ETF—this is the lowest-cost ASX-listed international strategy at just three basis points. Buy, hold, or sell?

Adam Dawes (BUY): It’s a buy from me. It gives you that broad U.S. market exposure, and alongside some of the other ETFs we’ll discuss today, it provides the diversification you need. VTS is a great option, complementing IVV while offering even broader exposure.

Vishal Teckchandani: Charlie, it holds over 3,500 stocks of all shapes and sizes. The question is - diversification or diworsification? Buy, hold, or sell?

Charlie Viola (BUY): We’re a buyer. We use this in every client portfolio. We like U.S. markets, and VTS gives us total exposure, including the Nasdaq, mid-caps, and small caps. There’s an old saying—you get what you pay for. But this might be the exception to the rule because it’s a cracking ETF. You get massive exposure at a rock-bottom cost.

Betashares Australia 200 ETF (ASX: A200) - 0.04% MER

Vishal Teckchandani: Sticking with you, Charlie. The Betashares Australia 200 ETF—the cheapest ASX 200 ETF. Banks, resources... Buy, hold, or sell?

Charlie Viola (HOLD): It does its job, it’s like the midfielder in your football team. We’re a hold for now, given our outlook on domestic equities. It’s market-cap weighted, so you’re getting a lot of banks and miners. The ETF itself is great, but this is more about the broader market outlook than the product.

Vishal Teckchandani: Adam, quarterly dividends and broad Australian exposure. Buy, hold, or sell?

Adam Dawes (BUY): It’s a buy because Australian exposure is essential. Most clients don’t hold 200 stocks directly, so A200 fills that gap. There’s been a race to the bottom on fees, but this remains a very cheap and effective way to own the ASX 200. While growth in Australia might be limited in the near term, this ETF is a solid foundational holding.

iShares S&P Small-Cap ETF (ASX: IJR) - 0.06% MER

Vishal Teckchandani: Adam, IJR—the iShares S&P Small-Cap ETF. Six basis points for U.S. small-cap exposure. Buy, hold, or sell?

Adam Dawes (HOLD): It’s a hold. There are other small-cap ETFs I prefer. Small caps have been tough over the past year, and while many have been calling for a turnaround, we haven’t seen it materialize yet. I still like the small-cap space, but I’m happy to hold and wait.

Vishal Teckchandani: Charlie, some interesting holdings here - Alaska Air, Bath & Body Works, Urban Outfitters. Buy, hold, or sell?

Charlie Viola (BUY): We’re a buy. We see good growth potential in U.S. small caps. This should be a smaller allocation in a portfolio, but it’s a simple and cheap way to get exposure to that segment.

Betashares Global Shares ETF (ASX: BGBL) - 0.08% MER

Vishal Teckchandani: BGBL - Betashares’ global ETF. Eight basis points for exposure to 1,500 stocks across 20 markets. Buy, hold, or sell?

Charlie Viola (BUY): We’re a buy. Global equities remain a key part of portfolios, and this is a simple, cost-effective way to get exposure. While we use different global ETFs for our clients, there’s nothing wrong with BGBL for a broad allocation.

Adam Dawes (BUY): I agree. It complements VTS and A200 well. It’s not my top choice, but it provides broad, cheap exposure, making it a solid addition to a portfolio.

Carlton Investments Ltd (ASX: CIN) - 0.09% MER

Vishal Teckchandani: Here’s one that blew my mind - a listed investment company, Carlton Investments (CIN). Nine basis points, 30 holdings, mostly large caps. Buy, hold, or sell?

Adam Dawes (SELL): I dug into this one. It trades below its NTA, as many LICs do, but what concerns me is its concentration—32% in EVT (Event Hospitality & Entertainment). That’s a huge exposure to one stock, which we’d never recommend. It’s cheap, but I’m a sell due to concentration risk.

Vishal Teckchandani: That’s an entertainment thesis if I’ve ever heard one! Charlie, independent research shows it trades at a 27% discount to NTA. Buy, hold, or sell?

Charlie Viola (HOLD): I hadn’t heard of it before this, so I did some research. I actually calculated a 45% discount to NTA. We wouldn’t buy it due to the high EVT exposure, but if you already own it, you may as well hold given the deep discount.

Expert Picks

SPDR State Street S&P/ASX 200 ETF (ASX: STW) - 0.05% MER

Vishal Teckchandani: Alright, let’s cheer our audience up with some picks you do believe in. Charlie, what’s your rock-bottom-fee pick with strong long-term prospects?

Charlie Viola: It’s all about portfolio construction. We still like broad-based market exposure, so we prefer STW—the SPDR ASX 200 ETF. It tracks the market closely, offers great liquidity, and provides solid income with franking credits. Buy it, put it in your portfolio, and forget about it.

Vanguard All-World ex-US ETF (ASX: VEU) - 0.04% MER

Vishal Teckchandani: Adam, what’s your pick?

Adam Dawes: We started with VTS, and I’d complement it with VEU - the Vanguard All-World ex-U.S. ETF. It’s only four basis points, and together, VTS and VEU cover the entire global market efficiently.

Final Thoughts

Vishal Teckchandani: Well, there you have it! Hopefully, you can mix and match these cost-effective ideas to keep your portfolio costs low while still earning strong long-term returns. Charlie, Adam, thank you both for your insights.

If you enjoyed this episode, don’t forget to like, subscribe, and stay tuned for more. Good luck with your investing!