Australia's STW ETF Faces Fresh Test Amid Interest Rate Hikes

The SPDR S&P/ASX 200 Fund (STW) is Australia's original exchange-traded fund, listed in 2001. It was the first to track the S&P/ASX 200 index on the local market and remains a highly liquid way to own the 200 largest companies on the ASX in a single trade.

With the Reserve Bank holding its cash rate at 4.35% as of September 2026, STW offers a clear view of how Australia's biggest listed companies, dominated by banks and miners, are performing. The fund tracks the S&P/ASX 200 index, which comprises the 200 largest index-eligible companies by float-adjusted market capitalization.

STW is a passive ETF issued by State Street Global Advisors under its SPDR brand. It has a management fee of around 0.05% per annum and a total cost ratio of roughly 0.13%. The fund holds a broad basket of large-cap Australian companies, including banks and miners, which are sensitive to interest rates and commodity prices.

The RBA's September rate decision and its inflation guidance will be key factors in shaping STW's performance. Bank earnings, dividends, and loan growth will also be closely watched, as well as iron ore and commodity prices linked to Chinese demand. The Australian dollar and global risk sentiment will also impact the fund.