Many SMSF trustees wonder whether they would be better off in an industry super fund.
With rising advice fees, inconsistent performance and increasing compliance complexity, it’s a fair question: can an SMSF actually deliver better long-term returns than large super funds?
A common myth is that you can’t get better returns for the hassle – the time and cost – of running your SMSF. In fact, the 2019 survey by Investment Trends showed that investment advice was the biggest unmet need of SMSFs with 315,000 citing they need more advice.
But before you consider closing or transferring your SMSF to an industry fund, find out how Stockspot can help you get better returns and spend less time managing your SMSF portfolio, while also keeping your costs low and providing that all important financial advice, which many investors are lacking access to.
- How you can save time and money
- The golden rule for your SMSF – low fees
- The secret weapon – ETFs and passive investing
- The key to diversification
- The right asset allocation
Save time – and money
Simply investing in a diversified portfolio of Exchange Traded Funds (ETFs) can take the pain out of managing your SMSF. A big benefit of ETFs is that they give you more reliable returns than picking shares, as well as help simplify your SMSF audit and tax.
Using an online investment advisor, like Stockspot, to select the right ETFs for your SMSF portfolio can help reduce the need for investors to research the best performing ETFs. Stockspot help even more by automating tasks for investors, like rebalancing and revising your investment mix as your needs change and you near retirement.
No more having to monitor the stock market or adjust your investment mix yourself, knowing these all important tasks are being done for you. This not only helps you save precious time, it also helps you save money on things like brokerage fees and auditing at tax time.
The golden rule – low fees
Just as importantly, you want to keep the fees you pay for an advisor to manage your investment portfolio as low as possible. Stockspot’s Fat Cat Funds Reports have consistently found that fees make all the difference when it comes to your retirement savings.
If you are paying more than 1% per year in fees, you could be $200,000 worse off when you retire. So our number one golden rule is: less than 1% in fees.
That includes any advice fees, subscriptions and brokerage. Stockspot’s low monthly fee is all inclusive and we don’t charge brokerage when we buy, sell or rebalance your portfolio.
We also help you claim any franking credits owed to boost your total return.
ETFs: the secret weapon for SMSFs
Stockspot’s investment strategy of sticking to a mix of low-fee ETFs (mixing global and Aussie shares, bonds and gold) has delivered better returns than most industry and retail funds in Australia.
ETFs have also done much better than listed investment companies (LICS) and actively managed funds due to their lower cost, better tax efficiency, transparency and market tracking investment structure.
Our Topaz (growth) portfolio did better than all of the top 10 growth super funds over the past 1 year, returning 19.3% over the 12 months to 31 December 2025 (super fund performance data sourced from Chant West’s Super Fund Performance Survey).
Well diversified, low cost ETFs are the secret to better returns.
| (Growth/defensive asset mix) | 5 YEARS (P.A.) | 10 YEARS (P.A.) | |
| Growth | Average super fund (60-80% growth assets) | 7.7% | 7.7% |
| Stockspot Topaz portfolio (78% growth assets) | 11.0% | 10.2% | |
| Balanced | Average super fund (41-60% growth assets) | 6.1% | 6.2% |
| Stockspot Turquoise portfolio (60% growth assets) | 8.8% | 8.5% | |
| Conservative | Average super fund (21-40% growth assets) | 4.3% | 4.6% |
| Stockspot Amethyst portfolio (40% growth assets) | 6.7% | 7.0% |
Over the medium to long term (5 and 10 years) Our Topaz (growth) portfolio has significantly outperformed the average growth super fund over both 5 and 10 years, highlighting the long-term impact of disciplined asset allocation and low fees.
The key to diversification
Not all SMSFs outperform. In fact, many lag behind large industry funds.
The most common reasons include:
- High administration and advice fees
- Poor diversification (overweight Australian shares or property)
- Emotional or reactive investing
- Lack of structured asset allocation
Lack of diversification can expose SMSFs to unnecessary risk if a significant investment fails. With the ATO just announcing they are concerned that many SMSFs might not be diversified enough, now is the perfect time to review your investment mix.
Global shares represent only 15% of many SMSF portfolios in Australia. However, research^ shows a portfolio with a mix of 48% global shares and 52% Australian shares has given the best mix of risk and return over the last 20 years. At Stockspot, our portfolios are currently split between 30-48% in global shares and 52-70% Australian shares.
All Stockspot portfolios also include a mix of defensive assets such as bonds and gold. You may be familiar with bonds, but why gold you ask? The negative correlation between shares and bonds has weakened recently. This means that bonds may not provide as much of a cushion in a share market dip. Think of gold as like your last line of defence if this happens.
^Vanguard: Approach to Constructing Australian Diversified Funds (2017)
What’s the right asset allocation for a SMSF?
Getting your SMSF asset allocation right will help your portfolio deliver more consistent performance whether share markets rise or fall.
There’s no ‘one-size-fits-all’ rule. At Stockspot, we offer a free assessment and will suggest the right investment mix of low-cost ETFs for your SMSF. Find out more about different SMSF strategies for income and capital growth or protection.
Plus the strategies we recommend have experienced much lower volatility (risk) than only owning Australian shares and have had consistent returns over 1, 3 and 5 years, as you can see in the table above.
How to save time managing your SMSF
Managing an SMSF requires ongoing time and attention. Trustees are responsible for monitoring investments, rebalancing portfolios, meeting compliance requirements and coordinating annual audits. Without a clear process, SMSF administration can quickly become complex and time-consuming.
The most time-intensive tasks typically include:
- Tracking market movements
- Rebalancing when asset allocations drift
- Managing compliance and record-keeping
- Organising tax reporting and audits
A structured, automated investment approach, like a professionally managed investment portfolio with Stockspot, can significantly reduce this workload. Regular portfolio rebalancing, disciplined asset allocation and streamlined reporting help minimise emotional decisions, lower transaction costs and simplify administration.
This allows SMSF trustees to maintain control of their retirement strategy, without needing to actively manage markets every day.
Our top tip: stay in control of your retirement fund
Before you think about closing or transferring your SMSF to an industry fund, it’s worth considering how Stockspot can help save you time and money.
Plus you can tailor your SMSF investment portfolio by adding extra assets, countries or market sectors to your portfolio with Stockspot Themes. You might want to choose areas of the market you want a greater focus on in your portfolio.
For example you might want additional exposure to certain geographic regions (such as China or the U.S.), asset classes (global property or tech), or market factors (small companies, dividend shares or socially responsible shares).
And we ensure that your investment strategy stays balanced based on your goals and investment horizon.
And if you decide an SMSF isn’t right for you, you may wish to consider the Stockspot Super product, an ETF only superannuation solution.
SMSF vs Industry super fund FAQs
Is an SMSF better than an industry super fund?
Better is extremely subjective. An SMSF can be ‘better’ if you want control, flexibility and potentially lower investment costs. However, performance depends on diversification, asset allocation and keeping fees low.
What is the biggest mistake of SMSF investors
Many SMSF investors lack diversification. Often SMSFs are overly concentrated in Australian shares or property, increasing risk due to home bias and asset concentration.
Are ETFs good for SMSFs?
Yes. ETFs provide low-cost diversification across thousands of securities globally, making them efficient and tax-effective for SMSFs.
