Exchange-traded funds (ETFs) have become the go-to investment vehicle for Australian retail investors seeking low-cost, diversified exposure to shares, property, bonds and alternative assets. Unlike traditional managed funds, ETFs trade on the Australian Securities Exchange (ASX) like ordinary shares, offering transparency, liquidity and typically lower management fees.

According to the ASX, ETF assets under management in Australia have grown substantially over the past decade, driven by demand for passive indexing strategies and broad market exposure (ASX, 2026). As covered in foundational texts such as Principles of Finance, diversification across asset classes and geographies is a core principle of portfolio construction (OpenStax, 2026).

Below are 20 of the most widely held and actively traded ETFs on the ASX right now, grouped by asset class and investment objective.

General Advice Warning

This article provides general information only and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information in this article, you should consider whether it is appropriate for you and seek advice from a licensed financial adviser if necessary.

Australian Equity ETFs (Broad Market)

These ETFs track major Australian share indices and offer exposure to the largest companies listed on the ASX.

1. Vanguard Australian Shares Index ETF (VAS)

VAS tracks the S&P/ASX 300 Index, covering approximately 300 of the largest Australian companies. It offers broad diversification across sectors, with significant exposure to financials, materials and healthcare. Franking credits from fully franked dividends are passed through to investors, a valuable tax benefit for Australian residents.

2. iShares Core S&P/ASX 200 ETF (IOZ)

IOZ tracks the S&P/ASX 200, the benchmark index for large-cap Australian equities. It has a slightly lower management expense ratio (MER) than VAS and is favoured by cost-conscious investors seeking exposure to the top 200 ASX-listed companies.

3. BetaShares Australia 200 ETF (A200)

A200 also tracks the S&P/ASX 200 but carries one of the lowest MERs among Australian broad-market ETFs. It competes directly with IOZ and is popular among investors prioritising minimal fees.

4. SPDR S&P/ASX 200 Fund (STW)

STW is one of the oldest and most liquid Australian equity ETFs on the ASX. It tracks the S&P/ASX 200 and benefits from tight bid-ask spreads, making it suitable for both long-term holders and active traders.

International Equity ETFs

Australian investors increasingly allocate capital offshore to diversify beyond the domestic market and access growth sectors underrepresented on the ASX.

5. Vanguard MSCI Index International Shares ETF (VGS)

VGS provides exposure to approximately 1,500 companies across major developed markets, excluding Australia. It holds large-cap stocks from the US, Europe, Japan and other advanced economies, and is widely used as a core international holding.

6. iShares S&P 500 ETF (IVV)

IVV tracks the S&P 500 Index, offering direct exposure to 500 of the largest US companies. It is AUD-denominated and unhedged, meaning returns are influenced by movements in the AUD/USD exchange rate.

7. Vanguard US Total Market Shares Index ETF (VTS)

VTS tracks the CRSP US Total Market Index, covering the entire US equity market including small-cap and mid-cap stocks. It is favoured by investors seeking comprehensive US exposure beyond just large-cap names.

8. BetaShares NASDAQ 100 ETF (NDQ)

NDQ tracks the NASDAQ-100 Index, providing exposure to 100 of the largest non-financial companies listed on the NASDAQ, with heavy weightings to technology giants such as Apple, Microsoft, Amazon and Alphabet.

9. iShares Global 100 ETF (IOO)

IOO invests in 100 of the world’s largest multinational companies. It offers concentrated exposure to global blue-chip stocks and is used by investors seeking quality large-cap international holdings.

10. Vanguard All-World ex-US Shares Index ETF (VEU)

VEU provides diversified exposure to developed and emerging markets outside the United States. It complements US-focused ETFs and helps investors achieve true global diversification.

Emerging Markets and Asia-Pacific

11. iShares MSCI Emerging Markets ETF (IEM)

IEM tracks the MSCI Emerging Markets Index, offering exposure to equities in developing economies including China, India, Brazil and South Korea. Emerging markets carry higher risk but offer growth potential beyond developed markets.

Read also: Betashares Australia 200 ETF (ASX

): Cost Efficiency, Dividend Yield, and Investment Suitability

12. BetaShares Asia Technology Tigers ETF (ASIA)

ASIA targets the largest technology companies in Asia, including holdings in Taiwan, China, South Korea and India. It is designed for investors seeking concentrated exposure to Asia’s technology sector.

Australian Property (A-REITs)

Listed real estate investment trusts (A-REITs) provide income and capital growth from commercial, retail, industrial and residential property portfolios.

13. Vanguard Australian Property Securities Index ETF (VAP)

VAP tracks the S&P/ASX 300 A-REIT Index, offering diversified exposure to Australian listed property trusts. A-REITs typically distribute high levels of income, and distributions may include tax-deferred components.

14. iShares S&P/ASX 200 Listed Property Index Fund (ILB)

ILB focuses on the property sector within the ASX 200, providing investors with a lower-cost alternative for A-REIT exposure.

Fixed Income and Bonds

Bond ETFs offer defensive exposure and income, balancing equity risk within a portfolio.

15. Vanguard Australian Government Bond Index ETF (VGB)

VGB tracks the Bloomberg AusBond Treasury Index, investing in Australian Government Bonds issued by the Australian Office of Financial Management (AOFM). It is considered low-risk and suitable for conservative investors.

16. iShares Core Composite Bond ETF (IAF)

IAF provides diversified exposure to Australian investment-grade bonds, including government and corporate debt. It offers higher yield than pure government bond ETFs while maintaining a conservative risk profile.

17. BetaShares Australian High Interest Cash ETF (AAA)

AAA invests in a portfolio of cash and short-term bank deposits, aiming to provide returns in line with the RBA cash rate. It is used as a cash-equivalent holding within portfolios and offers daily liquidity.

Dividend-Focused and Income

18. Vanguard Australian Shares High Yield ETF (VHY)

VHY tracks the FTSE Australia High Dividend Yield Index, targeting Australian companies with above-average dividend yields. It is popular among income-focused investors seeking franked dividends and is particularly suited to retirees or those in lower tax brackets who can benefit from franking credit refunds.

19. BetaShares Australian Dividend Harvester Fund (HVST)

HVST uses an active strategy to harvest franking credits and generate income by holding Australian equities around dividend ex-dates. It is designed for investors prioritising income over capital growth.

Thematic and Sector-Specific

20. BetaShares Global Cybersecurity ETF (HACK)

HACK provides global exposure to companies involved in cybersecurity. It is a thematic ETF targeting a specific growth sector and is used by investors seeking concentrated exposure to emerging trends.

How to Choose the Right ETFs

When selecting ETFs, consider the following factors:

  • Diversification objectives: Are you seeking broad market exposure or targeted sector/thematic plays?
  • Cost: Management expense ratios (MERs) vary. Lower MERs compound over time and improve net returns.
  • Liquidity: Higher trading volumes generally result in tighter bid-ask spreads and lower transaction costs.
  • Tax efficiency: Australian equity ETFs that distribute franked dividends offer significant tax advantages for Australian residents. For international ETFs, consider whether currency hedging suits your risk profile.
  • Capital gains tax: ETFs held for 12 months or more qualify for the 50 per cent CGT discount for Australian residents (individuals and eligible trusts). Verify current CGT rules at ato.gov.au.

According to ASIC MoneySmart, investors should understand the underlying index, the fund’s replication method (physical or synthetic), and distribution policies before committing capital (MoneySmart, 2026).

Final Considerations

ETF investing offers a low-cost, transparent pathway to building a diversified portfolio across equities, property, fixed income and alternative assets. The 20 ETFs listed above represent some of the most liquid and widely held funds on the ASX, covering a range of asset classes, geographies and investment strategies.

Past performance is not a reliable indicator of future performance. Rates, thresholds and tax rules are subject to change; verify current investment conditions and tax treatment at ato.gov.au and moneysmart.gov.au before making investment decisions. For personalised advice tailored to your financial situation and goals, consult a licensed financial adviser.