10 ASX ETFs for investors to watch

What are ETFs?

Exchange Traded Funds (ETFs) are an increasingly popular way for investors to gain exposure to a wide variety of investments at a relatively low cost.

ETFs generally hold a particular type of shares, bonds, commodities, currencies, cryptocurrencies or futures contracts and usually reflect the price movement of their holdings. This enables investors to get exposure to particular industries (such as a financial services ETF), an index (such as the ASX200 ETF), international markets (such as a Korean shares ETF), bonds (through a bond ETF), etc.

There are approximately 258 ETFs trading on the ASX through financial services providers such as BetaShares, BlackRock, ETFS Management (AUS) Limited, State Street Global Advisors, Australia Services Limited, VanEck Investments Limited and Vanguard Investments Australia Ltd.

Given their sector specificity, ETFs provide stock investors with a convenient means to wager on the outcomes of broader macroeconomic or geo-political developments, as opposed to honing down on particular stocks.

What are the best ETF funds to watch?

2025 could offer investors a diverse range of macroeconomic opportunities, as geopolitical turmoil in the Middle East and Eastern Europe creates both uncertainty and potential for market growth. Analysts anticipate an end to hawkish monetary policies in many economies, following prolonged runs of rate hikes that have at least helped to quell inflation.

The following ten ETFs could be very interesting options for investors as of June 2025.

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

2. Vanguard Australian Shares ETF (ASX: VAS)

3. VanEck Australian Equal Weight ETF (ASX: MVW)

4. iShares Global 100 ETF (ASX: IOO)

5. Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC)

6. Vanguard MSCI Index International Shares ETF (ASX: VGS)

7. SPDR S&P/ASX 200 Resources Fund (ASX: OZR)

8. BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

9. iShares S&P 500 ETF (ASX: IVV)

10. VanEck MSCI International Quality ETF (ASX: QUAL)

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

The iShares Core S&P/ASX 200 ETF (IOZ) offers investors exposure to the top 200 companies listed on the Australian Securities Exchange (ASX), effectively mirroring the performance of the S&P/ASX 200 Index.

This ETF is designed to provide a low-cost, diversified investment across various sectors of the Australian economy.

Recent data indicates that IOZ has been among the most popular Australian ETFs in terms of inflows over the past year, reflecting strong investor confidence in the domestic market.

With a year-to-date return of 4.58% and a one-year return of 13.44%, IOZ continues to be a compelling option for those seeking broad exposure to Australian equities.

Vanguard Australian Shares ETF (ASX: VAS)

The Vanguard Australian Shares ETF (VAS) tracks the S&P/ASX 300 Index, providing investors with exposure to a broad range of Australian companies and property trusts.

As one of the largest ETFs in Australia, VAS offers a cost-effective way to invest in the domestic market.

In 2024, VAS maintained its position as Australia’s largest ETF, with assets under management increasing by over $3 billion to reach $17.8 billion. This growth underscores the ETF’s popularity among investors seeking diversified exposure to the Australian equity market.

VanEck Australian Equal Weight ETF (ASX: MVW)

The VanEck Australian Equal Weight ETF (MVW) provides investors with exposure to a diversified portfolio of Australian equities, assigning equal weight to each constituent.

This approach contrasts with traditional market-cap-weighted indices, potentially offering more balanced exposure across sectors.

Recent performance highlights the benefits of this strategy; for instance, the Bank of Queensland’s share price increase had a more significant impact on MVW compared to market-cap-weighted ETFs, due to its higher weighting in MVW.

iShares Global 100 ETF (ASX: IOO)

The iShares Global 100 ETF (IOO) offers exposure to 100 of the world’s largest multinational companies, providing investors with a diversified global portfolio.

This ETF is designed for those seeking international diversification across various sectors and geographies.

Amid global economic uncertainties, IOO has attracted investors looking to diversify away from domestic markets. With a year-to-date return of 2.27%, IOO remains a viable option for those seeking to incorporate large-cap global equities into their portfolios.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC)

The Vanguard MSCI Australian Large Companies Index ETF (VLC) aims to track the performance of the MSCI Australian Shares Large Cap Index, covering approximately 70% of the Australian share market’s free float-adjusted market capitalisation.

This ETF provides exposure to Australia’s largest companies across various sectors.

As of May 30, 2025, VLC was trading at AUD 83.64, reflecting investor confidence in Australia’s large-cap equities.

The ETF’s focus on established companies makes it a suitable choice for investors seeking stability and consistent dividend income.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF (VGS) provides exposure to many of the world’s largest companies listed in major developed countries, excluding Australia.

This ETF offers investors a way to diversify their portfolios internationally.

In 2024, VGS attracted close to $2 billion in investor cash flows, increasing its total assets under management to nearly $10 billion.

This growth reflects the ETF’s appeal to investors seeking global diversification and exposure to international equities.

SPDR S&P/ASX 200 Resources Fund (ASX: OZR)

The SPDR S&P/ASX 200 Resources Fund (OZR) aims to closely track the returns of the S&P/ASX 200 Resources Index, offering exposure to the Australian resource sector, including the energy, metals, and mining industries.

As of June 1, 2025, OZR was trading at AUD 11.94, with a dividend yield of 4.22%.

This ETF is suitable for investors looking to capitalise on the performance of Australia’s resource sector.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

The BetaShares Global Sustainability Leaders ETF (ETHI) aims to track the performance of an index that includes a portfolio of large global stocks identified as “Climate Leaders,” excluding companies with significant exposure to fossil fuels or activities inconsistent with responsible investment considerations.

Despite global setbacks in ESG investments, Australian investors continued to support ESG funds, contributing US$300 million in the first quarter of 2025.

ETHI’s focus on sustainability aligns with the growing demand for ethical investment options.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF (IVV) provides exposure to 500 of the largest U.S. companies, offering investors a diversified portfolio of U.S. equities.

This ETF is designed for those seeking to invest in the U.S. market.

In 2024, IVV attracted significant investor interest, with assets under management reaching $11.03 billion.

This growth underscores the ETF’s popularity among investors looking to gain exposure to the U.S. equity market.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF (QUAL) aims to track the performance of the MSCI World ex Australia Quality Index, which includes companies with high return on equity, stable year-over-year earnings growth, and low financial leverage.

This ETF provides exposure to high-quality international companies.

QUAL is suitable for investors seeking to include high-quality international equities in their portfolios, offering a focus on companies with strong fundamentals and financial health.

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