The top three sectors that make up the Australia Index Fund are:
45.8% FinancialsNow with agriculture and mining accounting for the majority of Australia's exports, a downturn in the commodity markets is a risk to this index fund. With commodities booming right now, this index fund has performed very well this year.
Some of the top holdings in the fund include BHP Billiton (BHP), National Australia Bank (OTCPK:NABZY), and Westpac Banking Corporation (WBK), companies that individually have performed very well this year.
The expense ratio on this index fund is reasonable at 0.54% so the fees won't eat into your gains.
Disclosure: Author doesn't own any of the equities mentioned in this article.