Best Exchange Traded Funds (ETFs) have gained popularity among Australian investors looking for cost-effective diversification. These funds allow exposure to a broad range of assets, including shares, bonds, commodities, and international markets.
With geopolitical uncertainties and shifting monetary policies, 2025 presents a unique opportunity for ETF investors. Here are some of the top ASX-listed ETFs to consider this year.
1. iShares S&P 500 ETF (ASX: IVV)
The iShares S&P 500 ETF tracks the performance of the 500 largest US companies. It includes global giants like Apple, Microsoft, and Amazon.
This ETF provides a simple and cost-effective way for Australians to invest in the US stock market. Given its exposure to technology, healthcare, and consumer sectors, IVV remains a solid option for long-term investors.
2. BetaShares Cloud Computing ETF (ASX: CLDD)
Cloud computing continues to revolutionise businesses worldwide. The BetaShares Cloud Computing ETF focuses on leading cloud technology companies like Salesforce, Zoom, and CrowdStrike.
This ETF suits investors looking for exposure to the digital economy and long-term growth trends. However, it may experience volatility due to its sector-specific focus.
3. BetaShares Diversified High Growth ETF (ASX: DHHF)
DHHF is a multi-asset ETF designed for long-term capital growth. It holds a diversified mix of global equities, with 90% allocated to shares and 10% to bonds and cash.
This ETF is ideal for investors seeking broad exposure to international markets with a high-growth strategy.
4. iShares Global Consumer Staples ETF (ASX: IXI)
Consumer staples companies provide essential products, making them resilient during economic downturns. IXI includes major brands like Nestlé, Procter & Gamble, and Coca-Cola.
This ETF suits investors looking for stable returns with lower volatility. It also offers consistent dividend payments.
5. BetaShares Australian Quality ETF (ASX: AQLT)
AQLT focuses on high-quality Australian companies with strong profitability and balance sheets. It selects financially stable businesses that can withstand market fluctuations.
This ETF is a good option for investors prioritising capital preservation and steady growth.
6. Vanguard MSCI International ETF (ASX: VGS)
For those seeking global diversification, VGS tracks over 1,400 companies in developed markets like the US, Europe, and Japan.
This ETF provides exposure to blue-chip stocks, making it a strong core holding for international investors.
7. iShares Core Composite Bond ETF (ASX: IAF)
IAF offers exposure to high-quality Australian bonds. This ETF Best provides income stability and a defensive position against stock market volatility.
It is a good choice for investors looking to balance their portfoliosBest with fixed-income assets.
8. SPDR S&P/ASX 200 ETF (ASX: STW)
STW tracks the ASX 200 index, offering exposure to Australia’s largest companies. This ETF includes top financial, mining, and healthcare stocks.
It remains a reliable choice for investors wanting broad exposure to the Australian market.
9. Vanguard Global Aggregate Bond Hedged ETF (ASX: VBND)
VBND provides global bond market exposure with currency risk Best hedging. It includes government and corporate bonds from developed and emerging markets.
This ETF is suitable for investors seeking Best income and portfolio stability.
10. VanEck MSCI International Small Companies Quality ETF (ASX: QSML)
QSML targets high-quality small-cap companies in global markets. It offers exposure to businesses with strong financials and growth potential.
This ETF is a great option for investors looking to diversify into Best smaller, high-performing international stocks.
Sector-Specific ETFs to Watch
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
This ETF includes Asia’s biggest tech companies like Tencent, Alibaba, and Baidu. These companies are well-positioned for growth in AI, e-commerce, and digital payments.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
NDQ provides exposure to major US technology and growth Best companies, including Apple and Nvidia. This ETF has a strong track record of long-term performance.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
MOAT focuses on companies with strong competitive advantages, such as Meta Platforms, Berkshire Hathaway, and Walt Disney.
Best BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
ATEC includes Australia’s leading tech stocks like WiseTech Global and Xero. It provides exposure to the country’s growing technology sector.
BetaShares Global Cybersecurity ETF (ASX: HACK)
HACK invests in cybersecurity leaders like Palo Alto Networks and CrowdStrike. With cyber threats increasing, this ETF provides exposure to a high-demand industry.
Final Thoughts
ETFs remain a simple and effective Best way to gain diversified exposure to global and domestic markets. The ASX offers a wide range of ETFs covering different sectors, geographies, and asset classes.
For long-term investors, focusing on quality ETFs with strong growth potential could be a smart strategy in 2025.
