Best ETFs in Australia (2026) — Top ETFs Across Every Category

This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.

Contents

Australia’s ETF market has grown to over 350 products covering every major asset class and market segment. This article cuts through the noise and highlights the leading ETFs in each category for 2026 — based on cost, diversification, track record, and relevance to Australian investors.

Important: This article covers the ETF landscape for educational purposes. No ETF mentioned here is a personal recommendation. Individual suitability depends on your financial situation, goals, and risk tolerance.

Best Broad Australian Share ETFs

ETFProviderIndexMERWhy it features
A200BetaSharesSolactive Aus 2000.04%Lowest MER for Australian broad market
IOZiSharesS&P/ASX 2000.05%Low cost, BlackRock management, deep liquidity
VASVanguardS&P/ASX 3000.07%Most widely held, Vanguard brand, 300 stocks

All three are highly similar in practice. The MER difference between A200 and VAS is $30/year on $100,000.

Best International Developed Market ETFs

ETFProviderIndexMERWhy it features
BGBLBetaSharesSolactive Global 500 ex-Aus0.08%Cheapest broad global ETF on ASX
VGSVanguardMSCI World ex-Australia0.18%Most popular international ETF, Vanguard, 1,500+ stocks
IVViSharesS&P 5000.03%Cheapest ETF on ASX — US only, no international ex-US

Best All-in-One Diversified ETFs

ETFProviderAllocationMERWhy it features
DHHFBetaShares100% shares0.19%Lowest cost all-in-one, 8,000+ global securities
VDHGVanguard90/10 shares/bonds0.27%Most popular all-in-one, longer track record
VDGRVanguard70/30 shares/bonds0.27%Balanced growth, more defensive allocation

Best Bond ETFs

ETFProviderCoverageMERWhy it features
IAFiSharesAustralian composite bonds0.18%Lowest cost mainstream Australian bond ETF
VAFVanguardAustralian composite bonds0.20%Vanguard brand, monthly income, widely used
VBNDVanguardGlobal bonds (hedged)0.20%Global bond diversification in AUD
AAABetaSharesAustralian bank deposits0.18%Cash-like, minimal duration risk

Best High-Yield / Income ETFs

ETFProviderFocusMERYield (approx)
VHYVanguardASX high-yield shares0.25%4.5–6% cash, franked
HVSTBetaSharesHigh yield + option overlay0.80%7%+ — higher fee, different risk profile
VACFVanguardAustralian corporate bonds0.20%4–5% interest income

Income ETFs typically have different risk profiles from growth ETFs — yield comparison should not be the only decision factor.

Best ESG ETFs

ETFProviderCoverageMER
VESGVanguardAustralian shares ESG0.16%
VETHVanguardInternational shares ESG0.20%
FAIRBetaSharesAustralian shares ESG0.29%

Vanguard’s VESG and VETH are the cheapest ESG options on the ASX.

Best Thematic / Sector ETFs

ETFProviderFocusMER
NDQBetaSharesNASDAQ-100 (US tech)0.48%
GOLDPerth MintPhysical gold0.15%
RBTZBetaSharesRobotics and AI0.57%
HACKBetaSharesCybersecurity0.67%

Thematic ETFs carry higher concentration risk — typically treated as satellite positions, not core holdings.

Building a Portfolio with ETFs

For most investors, a simple approach is most effective:

Portfolio typeExample combinationApprox. total MER
Simplest (1 ETF)DHHF or VDHG0.19–0.27%
Simple (2 ETF)VAS 40% + VGS 60%~0.14%
Intermediate (3 ETF)VAS 37% + BGBL 53% + VAF 10%~0.12%
Income-focusedVAS 40% + VHY 30% + VAF 30%~0.16%

See ETF Portfolio Australia for sample portfolio allocations.

Frequently Asked Questions

Which ETF has performed best in Australia over the past 5 years? Over the past 5 years, US technology-focused ETFs (NDQ, IVV) have generally shown the highest returns — driven by AI enthusiasm, US market outperformance, and AUD depreciation. However, the “best performer” over any given period is not a reliable guide to future returns. Thematic and concentrated ETFs with very high recent returns also carry higher risk of reversal. Past performance is not a reliable indicator of future performance.

Are all ETFs on the ASX ASIC-regulated? Yes. All ETFs listed on the ASX must be issued by ASIC-licensed entities and comply with Australian financial services law, including disclosure requirements (Product Disclosure Statement) and custody arrangements. ETF providers (Vanguard, BetaShares, iShares, VanEck) all hold Australian Financial Services Licences.

What is the cheapest ETF on the ASX? IVV (iShares Core S&P 500 ETF) at 0.03% MER is the cheapest ETF on the ASX — but it only covers the US S&P 500. For Australian shares, A200 at 0.04% is the cheapest. For global broad diversification, BGBL at 0.08% is the cheapest all-developed-world option.


This article provides general financial information only. ETF mentions are for educational context and are not a recommendation to buy or sell any specific product. Past performance is not a reliable indicator of future performance. Individual suitability depends on personal circumstances. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.