Australia’s ETF market revealed surprising winners in 2025. While mainstream investors focused on traditional blue-chip shares, several overlooked ETFs consistently outperformed broader market benchmarks. The ASX 200 index gained 9% during the year, yet specific thematic funds doubled or tripled these returns. Precious metals, critical minerals, and emerging technology sectors dominated performance rankings. Smart beta strategies attracted over $500 million in consistent inflows throughout 2025, signalling institutional recognition of tactical positioning opportunities.
Gold Miners: The Year’s Dominant Sector
The precious metals narrative dominated 2025’s investment landscape. Gold mining funds emerged as unexpected champions, delivering exceptional double and triple-digit returns. Two Australian-listed ETFs captured this momentum with contrasting approaches yet similar results.
The VanEck Gold Miners ETF (GDX) surged 119.8% to 131% over the calendar year. This fund provides investors direct exposure to the world’s largest gold mining companies. The GDX tracks the NYSE Arca Gold Miners Index, capturing significant upside from geopolitical uncertainties and inflation hedging demand. Top holdings represent Canadian, American, and Australian mining operations. The fund’s 0.53% annual management fee offers transparent cost structure for comprehensive sector exposure.
The VanEck Gold Miners ETF [Google Finance]
The Betashares Global Gold Miners Currency Hedged ETF (MNRS) delivered 148.88% returns over 2025. This currency-hedged structure eliminated foreign exchange volatility, isolating pure mining company performance. MNRS achieved 1-year returns of 148.88% after fees, substantially exceeding peer alternatives. The fund’s semi-annual distributions reflected operational cash flows from mining profits. Strong performance demonstrated that Australian investors gained protection through hedging mechanisms while capturing full operational gains from global mining activity.
The Betashares Global Gold Miners Currency Hedged ETF [Google Finance]
Both funds outperformed the ASX 200 by over 100 percentage points. Geopolitical tensions, escalating inflation concerns, and central bank positioning drove demand for safe-haven assets throughout the year. These overlooked options delivered exceptional outcomes for investors navigating 2025’s economic uncertainty.
Cybersecurity and Emerging Technologies: Digital Transformation Gains
Technology-focused ETFs captured investment trends toward digital security infrastructure. Global cybersecurity threats created sustained demand for protective software and hardware solutions. The Betashares Global Cybersecurity ETF (HACK) achieved 36.6% returns during the financial year to June 2025.
This fund invests in companies developing antivirus software, firewalls, encryption technology, and network protection systems. Holdings represent global leaders in cybersecurity with multinational revenue streams. The HACK ETF provided Australian investors access to defensive technology plays without individual stock selection risk. Cybersecurity spending accelerated across corporate and government sectors. Cloud computing adoption, artificial intelligence implementation, and data centre security requirements drove long-term fundamentals.
The Betashares Video Games and Esports ETF (GAME) delivered 90.5% returns during FY25. Gaming and esports represent powerful megatrends reshaping entertainment consumption globally. Competitive gaming expanded viewership to hundreds of millions of participants. Streaming platforms and tournament prize pools grew exponentially. The GAME ETF captured this transformation through hardware manufacturers, software developers, and esports operators. Australian investors remained underexposed to gaming sector growth despite demographics favouring digital entertainment.
The Betashares Video Games and Esports ETF [Google Finance]
Australian Quality: Domestic Fundamentals Shine
Two Australian-focused ETFs highlighted the strength underlying domestic market resilience. These funds overlooked by growth-focused investors delivered consistent, quality-based returns.
The Betashares Australian Quality ETF (AQLT) achieved 12.8% returns during 2025’s calendar year. This fund selects 40 ASX-listed companies based on three financial metrics: high return on equity, low debt levels, and stable earnings. Top holdings included Wesfarmers, BHP Group, and Telstra Corporation. Sector weightings favoured financials (37%), consumer discretionary (14%), and materials (14%). The fund’s 0.35% annual management fee ranked among the lowest available. Since inception in 2022, AQLT delivered average annual returns of 14.5% including dividends.
Betashares Australian Quality ETF [Google Finance]
The Betashares Australian Financials Sector ETF (QFN) generated 12% returns during 2025. This concentrated fund provided exclusive exposure to Australia’s largest financial institutions. Commonwealth Bank of Australia dominated holdings at 22%, followed by Westpac, NAB, and ANZ. Financial sector strength throughout 2025 benefited from stable mortgage markets, rising interest rates supporting net interest margins, and strong regulatory capital positions. QFN distributed semi-annual income payments. The fund’s 0.48% management fee reflected its focused investment mandate.
Betashares Australian Financials Sector ETF [Google Finance]
Battery and Critical Minerals: Emerging Infrastructure Megatrends
Energy transition themes dominated long-term investment discussions throughout 2025. Battery technology investment emerged as overlooked value proposition within broader renewable energy trends.
The Global X Battery Tech & Lithium ETF (ACDC) delivered 67.5% returns over the past 12 months. This fund captures the complete lithium supply chain: mining operations, lithium processing facilities, battery manufacturers, and energy storage technology companies. Holdings maintained equal weighting across portfolio constituents, preventing concentration in single companies. The fund tracked the Solactive Battery Value-Chain Index, excluding fossil fuel producers making over 25% revenue from oil and gas. ACDC’s 0.69% annual fee reflected active management components. Growth drivers centred on escalating electric vehicle production, renewable energy storage requirements, and consumer electronics battery demand globally.
Global X Battery Tech & Lithium ETF [Google Finance]
Asian Growth Dynamics: Regional Technology Expansion
Betashares Asia Technology Tigers ETF (ASIA) achieved 30% returns during FY25. This fund provided investors concentrated exposure to Asia’s leading technology companies operating across software development, cloud computing, and digital services. Regional economic growth, middle-class expansion, and digital adoption created structural tailwinds. Technology infrastructure spending accelerated across the region. ASIA captured this Asian century narrative without direct China country risk exposure, diversifying across South Korea, Taiwan, and other developed Asian markets.
Property Securities: Quiet Comeback from Undervaluation
Vanguard Australian Property Securities Index ETF (VAP) recorded 9.29% returns over the past 12 months. Australian real estate investment trusts retreated from investor favour during recent technology stock dominance. Post-pandemic normalisation, office space rationalisation, and industrial logistics strength supported underlying valuations. VAP’s 0.23% annual management fee offered exceptionally cost-effective real estate exposure. Quarterly dividend distributions provided consistent income streams. The fund tracked 31 leading Australian property operators across shopping centres, industrial warehouses, data centres, and office complexes.
International Markets: Broader Growth Opportunities
Global X FANG+ ETF (FANG) delivered 33.24% returns over the past year. This equally-weighted fund captured technology and innovation-focused companies including Tesla, Apple, Alphabet, Meta, Amazon, Microsoft, Netflix, and Nvidia. Magnificent Seven technology stocks drove equity market performance throughout 2025. FANG’s 0.35% annual fee provided efficient exposure to global growth leaders.
Global X FANG+ ETF [Google Finance]
Vanguard FTSE Asia ex Japan Shares ETF (VAE) returned 23% during 2025. This fund provided exposure to Asian development stories excluding mature Japanese markets. Emerging market growth acceleration, foreign direct investment flows, and manufacturing relocation from China created positive momentum.
Key Investment Insights: What 2025 Revealed
- Precious metals and gold mining delivered extraordinary returns exceeding 100% annually
- Overlooked cybersecurity investment theme outperformed broader technology indices
- Quality-based selection strategies captured Australian domestic strength effectively
- Battery technology exposure positioned investors within energy transition megatrends
- Currency-hedged strategies isolated company performance from foreign exchange volatility
- Asian growth narratives remained under-owned despite regional economic momentum
- Property securities represented contrarian value plays following technology dominance
Also Read: US Treasury Taps Australia and India to Break China’s Grip on Critical Minerals
Strategic Takeaways for Forward Planning
Australian investors who ventured beyond mainstream indices accessed extraordinary returns throughout 2025. Thematic ETFs capturing megaetrends—precious metals, cybersecurity, batteries, gaming—substantially outperformed generalist approaches. Quality-based selection mechanisms identified resilient companies with strong fundamentals. Currency-hedged structures eliminated foreign exchange noise from performance calculations. Asian and international diversification captured global growth trajectories unavailable domestically.
These overlooked funds demonstrated that active thematic investing through exchange-traded vehicles generated compelling risk-adjusted returns. 2025 validated the case for overweighting megatrend exposure. Australian investors maintaining concentrated domestic holdings or passive index approaches significantly underperformed available opportunities. Forward-looking portfolios demand thematic positioning, quality selection disciplines, and geographic diversification across emerging and developed markets globally.
