Revealed: Australia's best and worst ETFs for 2025
ETFs have hit a record $272b under management.
Australians now have a record 388 exchange-traded funds (ETFs) to choose from, with total funds under management surging 37% in the past year to $272 billion.
The growth was fuelled by the 49 new ETF added on the ASX, according to the InvestSMART 2025 ETF Scorecard.
But while more choice is good news for investors, the gap between winners and losers is widening.
ETF winners: Bitcoin, games and gold
The standout was the DigitalX Bitcoin ETF (ASX: BTXX), up 95.5% over the year to June 30 on Bitcoin's rally.
Launched in July 2024, it's still a newcomer and, as InvestSMART notes, is yet to prove its long-term credentials.
Close behind was the Betashares Video Games and Esports ETF (ASX: GAME), up 90.3% as the gaming industry boomed.
Apart from a clever ticker code, GAME gives investors exposure to some of the industry's biggest names including Roblox and Nintendo.
"It also offers geographic diversity with holdings chiefly spread across the US, Japan and China," InvestSMART said.
Gold ETFs also dominated the top 10, as investors sought safe-haven assets during geopolitical and trade tensions.
ETF losers: Bears and short sellers
Bear-themed ETFs had a tough run.
The Betashares US Equities Strong Bear Complex ETF (ASX: BBUS) plunged 31.4%.
BBUS is designed to let investors profit from a decline in the US share market, something that has only happened in four of the past 20 years.
Other leveraged short funds - such as the Global X Ultra Short Nasdaq 100 Complex (ASX: SNAS) and Betashares Australian Equities Strong Bear Complex (ASX: BBOZ) - lost 27.4% and 20.6% respectively.
And it turns out tickers aren't everything: the Betashares Global Healthcare ETF (ASX: DRUG) was the fourth worst performer, falling 11.2%.
What ETF was the most popular?
Vanguard dominated the popularity stakes.
Its Australian Shares ETF (ASX: VAS) attracted $3.7 billion in new money, pushing its size past $20 billion.
Launched in 2009, it charges just 0.07%% in fees.
Vanguard's MSCI International ETF (ASX: VGS) came in second, giving investors exposure to 1,200 global companies including Apple, Nvidia and Amazon.
Betashares' Australia 200 ETF (ASX: A200) came in third.
At the other end, the Ardea Real Outcome Bond ETF (ASX: XARO) saw the largest outflow - $246 million - despite returning 4.5% over the year.
XARO invests in government bonds, aiming to deliver stable returns exceeding the cash rate and inflation.
While it returned 4.5% over the past year, the top performers among the Australian fixed income ETFs have delivered higher returns, often with lower fees.
Best performing ETF over five years
Over five years, the Global X FANG+ ETF led the pack with a 30.8% annualised return, turning $1000 into $3823.
"ETFs are changing how Australians invest," says InvestSMART CEO Ron Hodge.
"Even during those challenging periods, ETFs gave everyday investors the ability to stay invested, manage risk and keep their focus on long-term goals."
To view the full InvestSMART ETF Scorecard, click here.
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