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Home / SMSFs / SMSF investing / Most popular investments for SMSFs / SMSF investment: 20 most popular Australian shares

SMSF investment: 20 most popular Australian shares

November 16, 2020 by Barbara Drury Leave a Comment

Reading time: 2 minutes


This article lists the 20 most popular Australian shares invested in by SMSFs as of 30 June 2020. This article uses data supplied by BGL, an SMSF administration software company, and is based on a statistical analysis of more than 25% of the 200,000 SMSFs administered using BGL software. We thank BGL for giving SuperGuide access to such valuable data.

See also

  • SMSF investment: 20 most popular international shares
  • SMSF investment: 20 most popular managed funds
  • SMSF investment: 20 most popular ETFs
  • Ron Lesh (CEO of BGL) discusses some of the main insights from the data

Crisis? What crisis? Despite a year of volatile share prices, SMSFs held their course in the year to June 2020. They continue to invest heavily in Australian blue chip shares, which offer a degree of safety along with the potential for capital gain and dividend income.

These companies are household names Australians have grown up with – think the big four banks, BHP Billiton, Telstra, Coles, and Woolworths. They offer investors an opportunity to buy shares directly in companies they believe will deliver long term returns.

Buying shares directly also allows individual investors to build their own diversified portfolio across a range of industries according to their own needs for long-term growth, create a sustainable income stream from dividends and reap the tax advantages of dividend franking credits.

Australian shares are the most popular investments among SMSFs, with almost 60% of funds holding them. This compares with less than 3% of funds holding direct international shares and 17% with traditional managed funds. ETFs are also rapidly gaining acceptance, with more than 15% of SMSFs now holding them.

Of course, picking shares and monitoring them takes time and effort but it does have the potential to grow wealth in the long run. And, because all earnings on investments in your super fund must be preserved until you retire or reach another condition of release, capital gains and dividend income must be reinvested within your fund where they compound over time.

According to BGL data, as of 30 June 2020 direct investment by SMSFs in domestic listed securities is heavily concentrated in blue chip stocks which tend to mirror the ASX top 20 listed companies.

The top 20 list below is ranked by the percentage of SMSFs that hold these shares, rather than the value of assets that all SMSFs have invested in those shares, although both figures are provided in the table.

20 most popular Australian shares invested in by SMSFs.

RankSecurity codeCompany% of Funds with Domestic Listed Securities that hold this security% of total SMSF Domestic Listed Securities Investments*
1WBCWestpac 48.3%4.9%
2NABNAB47.4%4.9%
3CBACBA44.6%8.4%
4BHPBHP44.4%5.3%
5ANZANZ43.6%4.0%
6TLSTelstra43.4%3.3%
7WESWesfarmers 33.8%3.6%
8WPLWoodside Petroleum 29.2%1.6%
9COLColes 23.1%1.0%
10WOWWoolworths 22.4%2.2%
11CSLCSL 18.6%5.1%
12MQGMacquarie Group 17.9%2.4%
13RIORIO Tinto16.9%1.9%
14S32South32 15.7%0.3%
15TCLTransurban 14.1%1.4%
16AGLAGL Energy 11.9%0.7%
17SYDSydney Airport11.7%0.6%
18SUNSuncorp Group 11.6%0.6%
19SHLSonic Healthcare 10.6%0.8%
20ORGOrigin Energy 10.1%0.4%

Source: BGL (bglcorp.com.au). Data as of 30 June 2020

As you can see, direct investment by SMSFs is concentrated in the big four banks which take out four of the top six spots, with Macquarie Group also remaining in the top 20. Heavyweights BHP and Telstra round out the top six.

Despite the COVID-linked market tremors in the first half of 2020, and the previous fallout from the Banking Royal Commission, SMSFs have barely changed their bank holdings.

Ever since the GFC, the big banks have been prized for their reliable income stream and high dividend yields at time of falling interest rates. While bank dividends may still be better than the near zero interest rates on offer from term deposits, it can no longer be taken for granted that the banks will provide the growth and income investors have come to expect and depend on.

In 2020, the big four banks and Macquarie have all either deferred or cut dividends, against a backdrop of falling earnings due to the recession and COVID. It remains to be seen if SMSF investors will begin to spread their net more widely by seeking out more diverse sources of yield and/or ASX stocks with higher growth potential.  

After cutting the cash rate and the target rate for three year government bonds to 0.1% in November 2020, the Reserve Bank indicated that it would not consider lifting rates for at least three years. It’s also likely that the banks could face further downward pressure on earnings in 2021 when Government income support measures are phased out and borrowers who deferred loan repayments due to COVID come under pressure to resume payments.

That said, the dividend yields from Australian shares, although reduced, is still far better than yields from bank deposits and other popular asset classes.

Learn more about SMSF assets in the following SuperGuide articles:

SMSF investment: 20 most popular ETFs

SMSF investment: 20 most popular ETFs

November 16, 2020

SMSF investment: 20 most popular managed funds

SMSF investment: 20 most popular managed funds

November 16, 2020

SMSF investment: 20 most popular international shares

SMSF investment: 20 most popular international shares

November 16, 2020

Which asset classes are popular with SMSFs?

Which asset classes are popular with SMSFs?

April 4, 2019

SMSFs: Top 10 alternative investments

SMSFs: Top 10 alternative investments

January 22, 2019

Learn more about SMSF investment in the following SuperGuide articles:

SMSF investment rules: What every trustee should know

SMSF investment rules: What every trustee should know

April 15, 2021

The importance of asset allocation

The importance of asset allocation

February 10, 2021

SMSF investment rules: Collectables and personal use assets

SMSF investment rules: Collectables and personal use assets

October 15, 2020

What are the SMSF borrowing rules?

What are the SMSF borrowing rules?

August 6, 2020

How to create an SMSF investment strategy (including example documents)

How to create an SMSF investment strategy (including example documents)

August 6, 2020

How to achieve genuine diversification in an SMSF

How to achieve genuine diversification in an SMSF

August 3, 2020

How do SMSF retirees invest?

How do SMSF retirees invest?

March 14, 2020

10 steps to buying a commercial property and leasing it to your SMSF

10 steps to buying a commercial property and leasing it to your SMSF

February 12, 2020

What on earth is an in-specie transfer?

What on earth is an in-specie transfer?

January 15, 2020

How to invest in infrastructure through an SMSF

How to invest in infrastructure through an SMSF

October 1, 2019

ETFs: How do I use them and what do they cost?

ETFs: How do I use them and what do they cost?

June 19, 2019

SMSF guide to hedging

SMSF guide to hedging

May 1, 2019

SMSFs and property: A Super Guide

SMSFs and property: A Super Guide

April 5, 2019

The definitive SMSF guide to franked dividends

The definitive SMSF guide to franked dividends

April 2, 2019

Related topics

Most popular investments for SMSFs SMSF investing SMSFs

IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more

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All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs.

You should consider whether any information on SuperGuide is appropriate to you before acting on it.

If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

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