Top 5 ASX ETFs to watch in 2025

What are ETFs?

Exchange-traded funds (ETFs) are an increasingly popular way for share traders 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 or futures contracts, and usually reflect the price movement of their holdings. This enables share and CFD traders to gain exposure to particular industries (such as a financial services ETF), an index (such as the ASX200 ETF), international markets (such as a US shares ETF), bonds (through a bond ETF) and others.

What to know about ASX ETFs

As of 17 November 2025, there are more than 370 ETFs 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 Limited.

Given their sector specificity, ETFs provide share traders with a convenient means to wager on the outcomes of broader macroeconomic or geopolitical developments, as opposed to doubling down on particular stocks.

Advantages of ETFs

Let’s take a look at the benefits you might reap if you trade ETFs:

• Trade like shares: ETFs trade on an exchange in the same way shares do. This means it’s relatively straightforward to trade them, either via CFDs or buying and selling the actual ETF shares
• Diversification: As you’ll see in our list of the top five ASX ETFs to watch, you can cast a wide net of exposure with ETFs. Whether you want industry, country, asset or index exposure, there are hundreds of ASX ETFs to choose from
• Cost-effective: ETFs are passively managed, which means they’re cheaper to invest in than, say, mutual funds
• Dividends: Many ETFs pay dividends regularly, which you can choose to reinvest to keep growing your investment

Risks of ETFs

Of course, no ETF is without perils. Here’s what you should watch out for when trading them:

• Tracking errors: It’s not a simple matter to track an underlying index, for example. Make sure the ETFs you’re looking at are tracking their underlying as precisely as possible
• Lower-yielding dividends: While many ETFs pay dividends regularly, these are sometimes not as high as they might be with a specific share

Top 5 ASX ETFs to watch in 2025

We looked at the top five ASX-listed ETFs right now by market capitalisation. These are all highly liquid, popular ETFs that are worth considering.

Overview of the shares in this article

You can directly share trade with a share trading account or trade CFDs on all of the shares on our list with us.

All figures are correct as of 17 November 2025.

1. Vanguard Australian Shares Index ETF (ASX: VAS)

Tracks: Return of the S&P/ASX 300

Market cap: A$22.07 billion¹

The Vanguard Australian Shares Index ETF is Australia's largest and most popular ETF, offering share traders broad exposure to the Australian stock market – the largest 300 Australian shares, based on market cap, tracking the S&P/ASX 300 Index.

The fund's top holdings reflect Australia's market concentration, with major banks like Commonwealth Bank, Westpac, ANZ and NAB forming significant portions of the portfolio, alongside mining giants BHP and Rio Tinto, retail heavyweight Woolworths, and technology leader CSL.

This composition provides traders with diversification across our most established companies spanning financials, materials, healthcare and consumer sectors.

VAS is entirely exposed to the Australian economy. If the country underperforms globally, the ETF will too. It is also heavily weighted toward financials and resources, which can make performance more cyclical.

Highlights:

• Low management expense ratio of 0.10% makes it one of the most cost-effective ways to gain exposure to the Australian share market
• The fund can be suitable for beginner share traders in that it spreads the investment across hundreds of companies, helping reduce the risk that comes from relying on just a handful of stocks
• The fund consistently pays dividends every three months²
• Because VAS doesn’t move as dramatically as individual stocks, CFD traders should be aware that volatility may be more moderate

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

Tracks: MSCI World ex-Australia Index

Market cap: $13.72 billion³

The Vanguard MSCI Index International Shares ETF serves as the gateway for Australian share traders looking for diversified global shares exposure. VGS tracks the MSCI World ex-Australia Index, providing access to around 1,500 companies across developed markets, including the US, Europe, Japan and others (excluding Australia).

A big drawcard of VGS is its heavy exposure to the world’s leading companies, including household names in technology, healthcare, consumer goods and finance. Its largest weightings are typically in large US tech companies, which have been among the world’s strongest performers over the past decade. For share traders who want global diversification but prefer a single, reliable ETF, VGS is often considered the go-to choice.

Key holdings include technology giants like Apple, Microsoft, Amazon and Alphabet, along with other companies from various sectors.

The ETF only holds companies from developed markets, meaning share traders miss out on faster-growing emerging economies such as India, Brazil or China. The ETF is also unhedged, so currency movements can affect returns – a strengthening Australian dollar may reduce gains, while a falling dollar can boost them.

VGS has delivered solid performance over the past four months, benefiting from the strength in US technology shares and resilient global economic conditions.

Highlights:

• International diversification provides local share traders with exposure to different economic cycles and growth opportunities beyond the Australian market
• Low management expense ratio of 0.18%
• Because VGS represents a broad global basket, it tends to move in line with major indices like the S&P 500, meaning volatility is moderate compared to single-stock CFDs

3. iShares S&P 500 ETF (ASX: IVV)
 

Tracks: S&P 500 index

Market cap: A$12.68 billion⁴

The iShares S&P 500 ETF provides local share traders with direct exposure to the US’s largest 500 companies through one of the world's most recognised and liquid indices. IVV tracks the S&P 500 Index, offering share traders access to the companies that form the backbone of the US economy and global markets.

Its constituents span the technology, healthcare, financials, consumer and industrial sectors. This composition reflects the innovation-driven nature of the US economy, with technology companies representing a significant portion of the index. And the market cap weighting means larger companies have a greater influence on performance.

The S&P 500's focus on large-cap companies provides more stability compared to other, broader international indices – all while maintaining significant growth potential. However, remember that no ETF or share is guaranteed to perform well; ensure your risk management strategy is solidly in place.

Highlights:

• High liquidity, low management fees of 0.04% and access to the world's most liquid and transparent equity market
• Strong performance over the past six months, driven by positive US corporate earnings, AI enthusiasm and resilient US economic fundamentals
• Because the S&P 500 often experiences more volatility around key data releases (like Fed decisions), IVV can be attractive for short-term CFD trading strategies

4. BetaShares Australia 200 ETF (ASX: A200)
 

Tracks: Solactive Australia 200 Index

Market cap: A$8.44 billion⁵

The BetaShares Australia 200 ETF provides exposure to the largest 200 Australian companies, based on market capitalisation. Unlike many other Australian share ETFs, A200 uses the Solactive Australia 200 Index, which creates a slightly different composition compared to traditional S&P/ASX indices.

Its holdings include our biggest and most established companies, including the major banks (CBA, Westpac, ANZ, NAB), mining giants (BHP, Rio Tinto, Fortescue), major retailers (Woolworths, Coles) and leading healthcare companies (CSL, Cochlear).

The fund's composition closely mirrors VAS, but with a slightly more concentrated approach, focusing on the largest 200 rather than 300 companies.

Like other Australian-focused ETFs, A200’s performance is tied to the strength of the domestic economy and key sectors like housing and commodities. The ETF may be less appealing to those seeking more global diversification. Concentration risk, particularly in financials and resources, is also something share traders should be aware of.

Highlights:

• The ETF has seen some volatility over recent months, providing opportunities for CFD traders to take a position
• It offers a management fee of 0.04% per year, making it one of the most cost-effective ways to access the Australian market. In fact, it claims it’s the world’s lowest-cost Australian shares index ETF⁶
• It pays dividends quarterly

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

Tracks: MSCI World ex Australia Index

Market cap: A$7.89 billion⁷

The VanEck MSCI International Quality ETF is another ETF on our list that tracks the MSCI World ex Australia Index.

QUAL focuses specifically on companies that score highly on three key ‘quality’ factors: high return on equity, stable year-on-year earnings growth and low financial leverage. In other words, the ETF seeks out companies that are profitable, consistently growing and financially sound.

For beginner share traders, one advantage of QUAL is that it provides global diversification along with a more selective approach. Instead of investing in thousands of companies – some strong, some average – the ETF filters for those with strong fundamentals. This can appeal to share traders who want international exposure but prefer a more curated list of global leaders rather than a broad index.

Highlights:

• CFD traders may use QUAL to speculate on themes such as global risk appetite, earnings strength or defensive market positioning. Because the ETF is less volatile than tech-heavy indices, CFD traders may find price swings more moderate
• For long-term share traders, QUAL works well as a complementary international ETF, especially for those who value stability and strong earnings over high-growth speculation. It pairs effectively with broader index ETFs to create a more balanced global allocation
• It comes with a management fee of 0.40% per annum

How to trade ASX ETFs with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX-listed ETFs on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX-listed ETFs
3. Choose the ETF you want to buy
4. Determine how many units you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about ETFs

Footnotes
 

1. List Corp, November 2025
2. Vanguard, August 2025
3. List Corp, November 2025
4. List Corp, November 2025
5. List Corp, November 2025
6. BetaShares, August 2025
7. List Corp, November 2025