Can someone clarify how it works for someone new to investment? If I invest $10,000 for a year and the index went up 8%. What is my returns?
I expect Returns = Amount invested + 8% – 0.75% management fees + dividends,
which is Returns = $10,000 + $800 – $75 + dividends paid out.

Is this unknown dividends part of the equation? With superannuation, you simply see a net figure.

Paul I don’t know of a leveraged passive fund like you describe. This may be simply because an investor can more easily create the same leverage with a margin loan over an index fund. In this way, the investor can determine precisely what level of gearing he or she is looking for, including possible tax deductions.

Internally geared active funds may be there to meet some super fund requirements, but you didn’t mention if this was important to your search.

EDITOR: The “safety” of investing in shares through another company eg: a Vanguard Index fund or a Statestreet ETF depends on that company’s management and risk procedures at the time.

I doubt either will go bankrupt any time soon but no one can predict the future