There’s no single best ETF. It depends on what you want it to do. Ranked by numbers, the highest returning ETF over the past year was IKO (+125%), the most popular was VAS ($4.3bn of new money in 12 months), the largest is VAS ($26.7bn) and the cheapest charge just 0.03% a year. But the best ETF for you is the one that achieves your objective.
There are 508 ETFs in Australia holding $388.0bn. Every “best ETFs” list ranks them a different way, so they rarely agree. Below are the four common ways to rank them, using the latest data, and then the way we actually choose ETFs at ETF Adviser.
1. The highest returning ETFs
The most common definition of “best”. Here are the ten ETFs with the highest total return over the past 12 months.
2. The most popular ETFs
Where Australians are putting new money. Popularity is a good sign an ETF is a sensible, low-cost core holding. It doesn’t mean it will perform best.
3. The largest ETFs
Size matters: bigger ETFs tend to have tighter trading spreads and are less likely to close. Most of the largest are broad, low-cost index funds.
4. The cheapest ETFs
Fees compound against you every year. The cheapest index ETFs now cost a few dollars a year for every $10,000 invested.
The best ETFs by category
“Best” makes more sense within a category. Here are the largest, cheapest and best-performing (1 year) ETFs in each of the main building blocks.
Category groups are our own selection of broad, mainstream funds in each area. Examples only.
My view: the best ETF is the one that achieves your objective
A 125% return is useless if it comes with risk you can’t stomach, and the cheapest ETF is no bargain if it doesn’t do the job you need. So before asking “which ETF is best?”, ask “what do I need my money to do?”
Low-cost, broad index ETFs across Australian and global shares, or one all-in-one ETF.
Australian dividend ETFs, bond ETFs, or covered call ETFs that trade upside for income.
Cash and bond ETFs, and gold as a diversifier.
A diversified core plus satellites in the themes that are trending, with a plan to exit.
Examples only, not recommendations. Consider your own objectives, financial situation and needs.
How we choose ETFs at ETF Adviser
We don’t pick one “best” ETF. We build a portfolio around the job it needs to do, using core and satellite:
- The core: one or two broad, low-cost index ETFs that do the long-term compounding. Here the best ETF is usually the cheapest, largest fund in its category.
- The satellites: a handful of ETFs for what the core is missing: a booming region, a sector, gold or bitcoin. Here “best” means the trends that are starting, found with our base and trend method and timed with clear rules.
- Risk control: our Market Health-O-Meter tells us when to hold more cash, so satellites are cut when trends end.
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Compare every ETF on ReviewETF
I couldn’t find a simple way to compare every Australian ETF, so I built ReviewETF.com.au. Jump straight to any list:
See the complete list of all ASX ETFs. Comparing two ETFs? See ETF match-ups: QRE vs MVR, CPPR vs WIRE and more. Or browse our own ETF lists by theme, sector and region, with my notes on each.
Frequently asked questions
What is the best ETF in Australia?
There is no single best ETF; it depends on your objective. By the numbers at 30 September 2026: the highest returning ETF over 12 months was IKO, the most popular by new money was VAS, the largest is VAS and the cheapest charge 0.03% a year. For a long-term core, broad, low-cost index ETFs are the usual starting point.
What is the best ETF for beginners?
Many beginners start with one broad, diversified ETF, either an Australian shares fund like VAS or A200, a global fund like VGS or BGBL, or an all-in-one fund like VDHG or DHHF that holds a whole portfolio. Low fees, large size and broad diversification are the key things to look for.
What are the cheapest ETFs in Australia?
The cheapest ETFs with at least $50m invested charge from 0.03% a year, led by VTS, MQAE, IVV. See our full list of the 25 cheapest ETFs.
What were the best performing ETFs last year?
Over the 12 months to 30 September 2026, the top performers were IKO, SEMI, HVLU, mostly concentrated funds in single countries or sectors. Past performance is not a reliable indicator of future performance.
How do I choose the best ETF for me?
Start with your objective (growth, income, protection or beating the market), then compare ETFs in that category on fees, size, what they hold and how closely they track their index. ReviewETF lets you compare every Australian ETF side by side.
Data: TMX Australia Funds Report, month ending 30 September 2026; 12-month flows from an industry ETF flows report. Fee = management cost (% a year). Size = funds under management. General information only, not a recommendation to buy or sell any ETF. ETFs named are examples only. Consider your objectives, financial situation and needs, and read the PDS and TMD before investing. Past performance is not a reliable indicator of future performance.