Who are the most popular ETF’s
in Australia 2025 and why?
Australian investors are drawn to these ETFs due to their consistent historical returns, effective portfolio diversification capabilities, and compatibility with diverse investment objectives. The following analysis explores their essential performance indicators and explains their widespread attraction:
Vanguard Australian Shares Index ETF (VAS.ASX)
Objective: Tracks the S&P/ASX 300 Index, offering exposure to Australia’s top 300 companies.
Performance:
- 2024: Returned 11.44%
- 2023: Returned 12.15%
- 2022: Returned -1.69%
Top Holdings: Commonwealth Bank (CBA.ASX), BHP Group (BHP.ASX), CSL (CSL.ASX), NAB (NAB.ASX), and Westpac (WBS.ASX)
Distribution: As of March 31, 2025, the gross distribution was 98.6233 cents per unit, comprising 72.7431 cents of net (cash) distribution and 25.8802 cents in franking credits and foreign tax credits.
Dividend Yield: Approximately 4.3% gross, with franking credits enhancing after-tax income for Australian investors.
Expense Ratio: 0.10%.
Why Popular? VAS offers a cost-effective way to gain broad exposure to the Australian equity market, making it a staple for investors seeking domestic diversification and dividend income.
BetaShares NASDAQ 100 ETF (NDQ.ASX)
Objective: Provides exposure to 100 of the largest non-financial companies listed on the NASDAQ, including tech giants like Apple, Microsoft, and Amazon.
Performance:
- 2024: Returned 11.44%
- 2023: Returned 12.15%
- 2022: Returned -1.69%
Performance Expected Return:
- 1-Year Return (as of March 31, 2025): 10.77%
- 3-Year Annualized Return: 16.40%
- 5-Year Annualized Return: 19.61%
Dividend Yield: Approximately 4.3% gross, with franking credits enhancing after-tax income for Australian investors.
Expense Ratio: 0.48%
Why Popular? NDQ appeals to investors seeking growth through exposure to leading global technology and innovation-driven companies.
iShares Core S&P 500 ETF (IVV.ASX)
Objective: Tracks the S&P 500 Index, representing 500 of the largest U.S. companies.
Performance:
- Year-to-Date (as of May 5, 2025): 3.52%
- 2024: Returned approximately 22%
- 1-Year Return (as of March 31, 2025): 8.21%
Performance Expected Return:
- 5-Year Annualized Return: 18.56%
- 10-Year Annualized Return: 12.47%
Expense Ratio: 0.03%
Top Holdings: Apple, Microsoft, Amazon, NVIDIA, and Alphabet.
Why Popular? IVV offers broad exposure to the U.S. equity market with a minimal expense ratio, making it attractive for long-term growth investors.
Vanguard MSCI Index International Shares ETF (VGS.ASX)
Objective: Tracks the MSCI World ex-Australia Index, providing exposure to large and mid-cap companies in developed markets outside Australia.
Performance:
- 2024: Unit price increased by over 26%
- 1-Year Return (as of May 1, 2025): 10.67%
Expense Ratio: 0.18%
Top Holdings: Apple, Microsoft, Amazon, NVIDIA, and Alphabet.
Why Popular? VGS allows investors to diversify internationally, accessing global economic growth while maintaining a low-cost structure.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
Objective: Invests in U.S. companies with sustainable competitive advantages, as identified by Morningstar’s equity research.
Performance:
- 5-Year Annualized Return: 13.31%
- 1-Year Return (as of April 28, 2025): 1.88%Expense Ratio: 0.49%
Top Holdings: Companies with “wide economic moats,” indicating strong competitive advantages, no holding over 3%.
Why It’s Popular: MOAT targets high-quality companies with durable competitive advantages, appealing to investors focused on long-term value and stability.
The Bottom Line
Australian investors gravitate toward these ETFs for their demonstrated capacity to provide diversified, cost-effective exposure to key domestic and global markets while delivering strong performance. Each ETF serves specific investment needs:
- VAS appeals to investors seeking comprehensive Australian equity exposure with dependable dividend income enhanced by franking credit benefits.
- NDQ and IVV offer streamlined access to global technology and large-cap U.S. stocks, delivering robust historical growth and stakes in leading innovative companies.
- VGS enables investors to diversify internationally across developed markets, mitigating home country bias while maintaining competitive fee structures.
- MOAT attracts value-oriented investors targeting premium U.S. companies with sustainable competitive advantages.
These ETFs collectively appeal through their reliable returns, transparent methodologies, high liquidity, and alignment with long-term wealth creation strategies. Their affordable fee structures and diversification benefits make them attractive to both individual and institutional investors.
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