If youâve searched âETFâ, youâve probably heard theyâre a simple, low-cost way to invest. Thatâs true, but with more than 500 of them now listed in Australia, knowing which ETF, when to buy and how to put them together is where most people get stuck. This guide covers the lot, with videos for each part.
An ETF (exchange-traded fund) is a fund that holds a basket of investments, such as shares, bonds or gold, and trades on a stock exchange like a single share. One purchase gives you a slice of everything inside, usually at a low cost. In Australia you buy ETFs through a broker on the ASX or TMX.
What is an ETF?
An ETF, or exchange-traded fund, lets you buy a whole basket of investments in one go. Say you want to own the Australian share market. Without an ETF, youâd have to buy all 200 companies in the ASX 200 yourself. With an ETF like A200 or STW, you buy one ETF and own a slice of all 200.
When you buy an ETF you buy units in the fund, and your money is pooled with other investors to hold the basket. âExchange-tradedâ simply means you buy and sell it on a stock exchange (the ASX or TMX in Australia) during market hours, just like a share.
ETFs: the evolution of managed funds
ETFs are the next step on from traditional managed funds. Theyâve become listed, so you can buy them like shares, and mostly index-based, so they cost far less to run. In effect, an ETF combines the best of both:
Unlike most unlisted managed funds, which you apply for through a form or platform and which are priced once a day, an ETF trades throughout the day on the exchange. The first US ETF launched in 1993; Australiaâs first, STW, listed in 2001.
How an ETF comes to market
Every ETF has a product issuer: the firm that creates and runs it. (You can sort every ETF by issuer on ReviewETF.)
You trade with a market maker, not another investor. Unlike a share, where your order is usually matched with someone elseâs, an ETF has market makers who stand ready to buy and sell, keeping the price close to the value of what the ETF holds (its NAV).
From my interview with David Tuckwell, co-founder of ETF Shares. Read ETFs under the hood.
Types of ETFs: start broad, then tilt
Every ETF follows a benchmark, an index or strategy that defines what it holds. The starting point is the broad index ETF: the whole market, at very low cost. Warren Buffett is one of the best-known supporters of low-cost index funds. In his 2013 letter to Berkshire Hathaway shareholders, describing his instructions for the trustee of his estate, he wrote:
âMy advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguardâs.) I believe the trustâs long-term results from this policy will be superior to those attained by most investors â whether pension funds, institutions or individuals â who employ high-fee managers.âWarren Buffett, 2013 Berkshire Hathaway shareholder letter
From there, ETFs offer different tilts on that exposure, getting more targeted at each step:
The list goes on: more than 500 ETFs across Australian and global shares, bonds, property, commodities and crypto. The easiest way to explore them by theme, sector, region or issuer is ReviewETF.com.au.
Where the money goes: international and index
Most of the new money flowing into Australian ETFs goes to international shares and to index funds.
Are Australians missing opportunities?
Over the past 12 months, Australians put $22.8bn into just ten ETFs, mostly broad index funds like VAS, VGS, A200 and IOZ. Those ten hold $109.3bn.
Now look at the ten best-performing ETFs over the same year. They returned between 43% and 125%, yet together they hold just $5.9bn. Thatâs less than a quarter of whatâs in VAS alone.
Flows: industry ETF Flows Monitor, 12 months (A$). FUM and total returns: TMX Australia Funds Report, 30 September 2026. Best performers exclude geared and complex products. âââ = less than the full period of history. Past performance is not a reliable indicator of future performance.
Most Australians are using ETFs for one job: a low-cost core. Thatâs a good start, and itâs where we start too. But the core alone just gives you the market. The three ASX 200 funds (VAS, A200, IOZ) hold $47.4bn and returned about 2â3% over the year. Meanwhile Korea, semiconductors, Asian tech and global value were running, and very few investors were on board. Some were our satellites: IKO and CURE.
Donât miss the next opportunity. Every week I look across 500+ ETFs for the trends that are starting, and tell members what weâre buying, holding and selling.
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The main ETF providers
Australiaâs ETF market is led by a handful of large issuers, with Vanguard, Betashares and iShares holding about two-thirds of all money invested. You can see the latest industry data in the TMX Australia fund reports.
Vanguard
Vanguard built its name on low-cost index investing and is Australiaâs largest ETF issuer. Its core building blocks include VAS (Australian shares) and VGS (international shares), plus diversified all-in-one ETFs like VDHG and VDAL.
| ETF | Name | Fee | Size |
|---|---|---|---|
| VAS | Vanguard Australian Shares Index ETF | 0.07% | $26.7bn |
| VGS | Vanguard MSCI Index International Shares ETF | 0.18% | $18.7bn |
| VHY | Vanguard Australian Shares High Yield ETF | 0.25% | $8.2bn |
| VGAD | Vanguard MSCI Indx International Shre (Hedged) ETF | 0.21% | $7.9bn |
| VTS | Vanguard Morningstar Us Total Mkt Shares Index ETF | 0.03% | $7.3bn |
ⶠVanguard ETFs explained
ⶠVanguard vs Betashares
ⶠVDHG vs VAS and VGS
ⶠVAS and VGS portfolio in 2026
See all Vanguard ETFs on ReviewETF âBetashares
Australiaâs home-grown ETF specialist, with the most ETFs on the market. Its range runs from very low-cost core funds like A200 to the Nasdaq 100 (NDQ), cash (AAA), themes like cybersecurity (HACK) and crypto.
| ETF | Name | Fee | Size |
|---|---|---|---|
| A200 | Betashares Australia 200 ETF | 0.04% | $11.1bn |
| NDQ | Betashares Nasdaq 100 ETF | 0.48% | $9.5bn |
| BGBL | Betashares Global Shares ETF | 0.08% | $5.5bn |
| AAA | Betashares Australian High Interest Cash ETF | 0.18% | $5.1bn |
| ETHI | Betashares Global Sustainability Leaders ETF | 0.59% | $3.8bn |
ⶠBetashares ETFs reviewedⶠVanguard vs Betashares
See all Betashares ETFs on ReviewETF âiShares (BlackRock)
iShares is BlackRockâs ETF business. In Australia itâs best known for low-cost core index ETFs, including the S&P 500 (IVV, and IHVV hedged) and the ASX 200 (IOZ), plus a long list of country ETFs such as South Korea (IKO).
| ETF | Name | Fee | Size |
|---|---|---|---|
| IVV | iShares S&P 500 ETF | 0.04% | $14.9bn |
| IOZ | iShares Core S&P/ASX 200 ETF | 0.05% | $9.7bn |
| IOO | iShares Global 100 ETF | 0.40% | $6.1bn |
| IHVV | iShares S&P 500 Aud Hedged ETF | 0.10% | $4.3bn |
| IAF | iShares Core Composite Bond ETF | 0.10% | $3.7bn |
VanEck
VanEck is known for âsmart betaâ: rules-based indexes that weight companies differently from the standard index, like equal weight (MVW) or quality (QUAL). It also runs specialist ETFs such as gold miners (GDX), resources (MVR) and subordinated debt (SUBD).
| ETF | Name | Fee | Size |
|---|---|---|---|
| QUAL | VanEck MSCI International Quality ETF | 0.40% | $9.2bn |
| SUBD | VanEck Australian Subordinated Debt ETF | 0.29% | $4.0bn |
| MVW | VanEck Australian Equal Weight ETF | 0.35% | $3.3bn |
| QHAL | VanEck MSCI International Quality (Aud Hedged) ETF | 0.43% | $2.7bn |
| IFRA | VanEck Ftse Global Infrastructure (Aud Hedged) ETF | 0.20% | $2.1bn |
ⶠInterview: Julian Moore, VanEck
Filter by issuer on ReviewETF âDimensional
Dimensional runs a small number of large, research-driven active ETFs. They hold broad markets but systematically tilt towards factors like smaller companies, value and profitability.
| ETF | Name | Fee | Size |
|---|---|---|---|
| DACE | Dimensional Aus Core Equity Trust - Active ETF | 0.28% | $7.2bn |
| DGCE | Dimensional Global Eq Trust Unhgd - Active ETF | 0.36% | $5.7bn |
| DFGH | Dimensional Global Core Eq Aud Hgd - Active ETF | 0.36% | $4.2bn |
| DAVA | Dimensional Australian Value Trust - Active ETF | 0.34% | $1.6bn |
| DGVA | Dimensional Global Value Trust - Active ETF | 0.45% | $1.3bn |
Global X
Global X focuses on themes and commodities: physical gold (GOLD) and silver, the FANG+ tech giants, semiconductors (SEMI), copper miners (WIRE), uranium (ATOM) and AI infrastructure (AINF).
| ETF | Name | Fee | Size |
|---|---|---|---|
| GOLD | Global X Physical GOLD Structured | 0.40% | $5.8bn |
| FANG | Global X FANG+ ETF | 0.35% | $1.8bn |
| ETPMAG | Global X Physical Silver Structured A | 0.49% | $1.4bn |
| SEMI | Global X Semiconductor ETF | 0.45% | $1.1bn |
| WIRE | Global X Copper Miners ETF | 0.65% | $0.9bn |
State Street (SPDR)
State Streetâs SPDR range launched Australiaâs first ETF, STW (ASX 200), in 2001. It also offers the ASX 50 (SFY), sector ETFs like financials (OZF) and global property.
| ETF | Name | Fee | Size |
|---|---|---|---|
| STW | SPDR S&P/ASX 200 ETF | 0.05% | $6.5bn |
| WXOZ | State Street SPDR S&P World Ex Aus Cbn Aware ETF | 0.07% | $0.9bn |
| SFY | SPDR S&P/ASX 50 ETF | 0.20% | $0.7bn |
| DJRE | State Street SPDR Dj Gbl Real Estate Esg Tilt ETF | 0.20% | $0.5bn |
| E200 | State Street SPDR S&P/ASX 200 Esg ETF | 0.05% | $0.5bn |
Tap any issuer for its largest ETFs, my videos and its full list.
Compare them head to head in Vanguard vs Betashares, or filter every ETF by issuer on ReviewETF. Examples only, not recommendations; fund sizes from the Betashares Australian ETF Review, September 2026.
Why ETFs are taking off
- Access the world: Australia is only about 2% of the worldâs share markets. ETFs let you own the other 98% from an Australian brokerage account.
- Simple: one trade gives you a whole market, sector or theme.
- Often low cost: many broad index ETFs charge well under 0.3% a year.
- Own the global leaders: buy the leading companies in a sector worldwide, like semiconductors or cybersecurity, in one go.
- More choice: 500+ ETFs, with 50+ new ones launched in 2026 alone.
- Liquidity: buy and sell during market hours, with market makers providing prices.
The risks
- Market risk: an ETF rises and falls with what it holds. Share ETFs can fall hard and take years to recover.
- Concentration and overlap: âdiversifiedâ can still mean heavily weighted to a few big companies, and several broad ETFs often hold the same companies. (See How many ETFs should you own?)
- Currency: unhedged international ETFs move with the Australian dollar.
- Fees and tracking error: costs and small differences from the index reduce your return.
- Complex products: geared, crypto and very narrow thematic ETFs can swing far more and suit few investors.
Always read the product disclosure statement (PDS) and target market determination (TMD). Moneysmart has a good plain-English overview.
How to buy an ETF in Australia
- Check youâre ready: emergency cash set aside, no high-interest debt, and money you wonât need for years.
- Open a broker account, such as CommSec, nabtrade, Stake or Pearler, and transfer funds.
- Search the ticker (e.g. DHHF) and check the providerâs website: what it holds, its fee and risk.
- Place a limit order near the current sell price during ASX hours, avoiding the first 30 minutes.
- Keep investing regularly and save your annual tax statements.
Full step-by-step guide: How to buy your first ETF in Australia.
How to choose from 500+ ETFs
This is the hard part. With more than 500 ETFs and dozens of providers, comparing them across separate websites takes hours. Thatâs why I built ReviewETF.com.au: the easiest way to review every ETF in Australia in one place.
AI, gold, cybersecurity, roboticsâŠ
Australia, US, Asia, emergingâŠ
side by side
and new listings
Start with a list. Iâve put together ETF lists by theme, sector and region, with fees, size and returns: gold, India, tech, AI, crypto, bonds and more.
Read how to use ReviewETF, see the best and worst ETFs each month, or compare providers in Vanguard vs Betashares.
When to buy an ETF
You canât value an ETF like a company: its price tracks what it holds. For a long-term core holding, investing regularly matters more than timing. For more targeted ETFs, timing your entry matters a lot. We wait for an ETF to move from a base into an uptrend, buy as it breaks a clear pivot, and set a stop before buying.
Read When to buy an ETF: why timing beats valuation and the base and trend method.
Building an ETF portfolio
You donât need 20 ETFs. Many investors use core and satellite: one diversified ETF as the core (holding thousands of companies across 50+ markets), plus a few smaller satellites for what the core misses, like gold, a booming region or a theme.
Read Core and satellite investing, How many ETFs should you own? and VDHG vs VAS and VGS.
I show you which ones to buy.
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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.
Frequently asked questions
What is an ETF?
An ETF (exchange-traded fund) is a fund that holds a basket of investments, such as shares, bonds or commodities, and trades on a stock exchange like a single share. Buying one unit gives you exposure to everything the fund holds.
How do ETFs work?
Investorsâ money is pooled to buy a basket of assets, usually tracking an index. Market makers quote prices throughout the day and can create or redeem units, keeping the ETFâs price close to the value of its holdings.
Are ETFs a good investment for beginners?
Many beginners use ETFs because they offer diversification and low costs in a single trade. A diversified all-in-one ETF can be a simple starting point, but all investments carry risk and ETFs can fall in value.
How many ETFs are there in Australia?
There are more than 500 ETFs listed on the ASX and TMX in Australia (508 at the end of September 2026), holding about $388 billion.
Who are the biggest ETF providers in Australia?
By funds under management in September 2026, the largest issuers were Vanguard (about $108bn), Betashares ($77bn) and iShares ($66bn), followed by VanEck, Dimensional, Global X and State Street.
How do I buy an ETF in Australia?
Open an account with a broker or investing app, transfer funds, search the ETFâs ticker code, check its details on the providerâs website, then place a buy order during ASX trading hours.
What is the difference between an ETF and a managed fund?
ETFs trade on an exchange throughout the day and usually publish holdings daily, while unlisted managed funds are bought through an application or platform and priced once a day. Index ETFs are often cheaper.