Superannuation is likely to be one of your biggest financial assets, but most Australians don’t realise how much high fees can reduce their retirement savings over time. That’s why indexed super are becoming a more attractive choice for more people.
Indexed super options have grown in popularity. They’re simple, low-cost and designed to grow your wealth over the long term. Even Scott Pape, the Barefoot Investor, recommends indexed super as a better option for most Australians.
In this guide, we’ll explain how indexed super works, why it can be a better alternative to traditional super options, and how to find the best indexed super funds in Australia for 2025.
What is indexed super?
An indexed super fund is a type of super fund that invests in low-cost assets designed to track a market index like the ASX 200 or S&P 500. Instead of trying to beat the market, these funds aim to match it. This approach is different from most traditional super funds, which use active strategies and fund managers to pick investments.
The problem is… research shows most actively managed funds underperform the index over the long run. That means you end up paying more in fees for worse results.
How is indexed super different from active super?
- Lower fees
Indexed super funds don’t rely on expensive fund managers who try (and often fail) to outperform the market - Simple and transparent
They follow a set index rather than making unpredictable investment calls - Stronger long-term performance
Over time, most active super funds struggle to beat low-cost index funds
But here’s the catch… not all indexed super funds are created equal. Some say they track an index but don’t clearly disclose which one. Others manage the index strategy internally without naming who’s behind it. This lack of transparency matters.
You want experienced index managers like Vanguard, BlackRock or State Street. They help ensure your money tracks the market closely, with fewer tracking errors, lower turnover and less tax.
At Stockspot, we’ve been strong advocates of index investing for over a decade. We use ETFs in super because they offer transparency, diversification and value. We’re upfront about who we partner with: Vanguard for Australian shares, BlackRock for global shares, and GlobalX for gold.
We believe super should be simple, low-cost and easy to trust. That’s why indexed super makes sense.
Why do people recommend indexed super?
Finance experts often recommend low-fee indexed super options for a simple reason: the less you pay in fees, the more you keep for retirement.
When you take out the conflicts of interest that exist in many super products, it becomes clear. You’re better off with more of your money growing, and less being chipped away by fees.
Why does indexed super work for most people?
- Fees compound over time
Even small fees can add up to tens or hundreds of thousands of dollars by retirement. Low-fee indexed super helps you keep more of what you earn. - Markets tend to grow over the long term
Index investing taps into that long-term growth. You don’t need to try and time the market or guess which sectors will perform. - It takes out the guesswork
There’s no need to choose a star fund manager or jump between strategies. Indexed super follows the market, so your investments grow with the economy.
It’s a set-and-forget approach that’s worked for millions of Australians, and it’s why indexed super continues to grow in popularity.
How to compare indexed super options
Not all index super funds are the same. When comparing options you should consider:
- Fees: The lower, the better. High fees eat into your returns.
- Investment strategy: What index does it track? Who manages it?
- Performance: Historical performance over 5+ years.
- Transparency: Are fees and holdings clearly disclosed?
- Ease of use: Can you easily manage and switch funds?
Also, an important issue with many so-called indexed super funds is that they don’t clearly disclose which index they track or who manages it. This can make it hard to know whether your money is genuinely following a market benchmark or if it’s being run with a degree of active discretion.
Some funds use vague labels like “balanced index” without specifying what that means or providing a breakdown of the underlying holdings. Stockspot takes a different approach. We only use ETFs that track well known indices, and we clearly state the provider and index involved. This level of transparency helps investors make better comparisons and gives confidence that their super is truly aligned with market performance.
How did indexed super options perform in Australia in 2025
| Superannuation option | Growth assets | 5 year p.a. performance* |
| Hostplus Indexed Balanced | 75% | 9.6% |
| REST Super growth Indexed | 75% | 9.4% |
| AustralianSuper Indexed Diversified | 70% | 9.1% |
| Australian Retirement Trust Balanced Index | 75% | 8.8% |
| Aware Super Balanced Indexed | 75% | N/A launched June 2023 |
| Stockspot Super Topaz | 78% | N/A launched 2025 |
Stockspot launched our superannuation product to the general public in early 2025 you can find out more about Stockspot super product and what makes us different here.
Is indexed super right for you?
Indexed super can be a great fit if you’re looking for low fees and long-term growth without the hassle.
It’s ideal for:
- People who want to keep more of their returns and pay less in fees
- Anyone who doesn’t want to constantly monitor or switch their super investments
- Investors who value broad market exposure and consistent long-term growth over chasing short-term wins
If you enjoy picking stocks or switching strategies often, an indexed super fund might not be the best fit. But if you want a simple and proven way to grow your retirement savings over time, indexed super could be the right choice.
How to switch to an indexed super option
Changing your super fund might sound like a hassle, but it’s actually pretty straightforward.
1. Choose your new super fund
Look for a fund that suits your goals and investment style. Stockspot Super is a good example. It’s 100% online, has transparent fees and takes care of portfolio rebalancing for you.
2. Open an account
Most super funds let you sign up online in just a few minutes.
3. Transfer your super
You can consolidate your super using the ATO’s online services in myGov. Or your new fund can help with the process.
4. Tell your employer
Make sure your employer has your new fund details so future contributions go to the right place.
With Stockspot, switching is simple. Once you’ve joined, you can share your new fund details with your employer directly from your app or dashboard.
Final thoughts
Indexed super is one of the easiest and most effective ways to grow your retirement savings. It offers low fees, transparency and a history of strong long-term performance.
If you want a simple, low-cost super fund that helps you keep more of your money, Stockspot Super is built to do exactly that.
