InvestSMART is a leading online investment platform that has released their 2025 ETF Scorecard. This report reveals the best- and worst-performing Australian exchange-traded funds for the year 2025.
Now in its second year, InvestSMART’s Scorecard ranks the performance of ASX-listed ETFs – both overall and across six key categories – and highlights the most and least popular based on investor inflows. It also features InvestSMART’s 5-star rating system. This is designed to encourage investors to focus on quality over short-term outcomes.
“ETFs make it easier to diversify your portfolio and are more affordable, so it is no surprise Australians turn to ETFs for building wealth, saving for retirement, and investing for the future of their children,” said Ron Hodge is the CEO of InvestSMART.
Investors face a challenge as ETFs grow in number. They must choose the funds that best suit their needs.
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“This is where InvestSMART’s 2025 ETF scorecard can help,” said Mr Hodge The report aims to provide investors with the tools and insight they need to make confident ETF choices, to focus on quality rather than hype, and to build long-term, strong portfolios.
Best performers: Gold glitters, gold dominates digital currency and gaming gains
DigitalX Bitcoin ETF was the best performer in 2018, delivering an astounding 95.5%.
“It’s hard to ignore the extraordinary gains in digital currencies – especially Bitcoin – over the past year,” Mr Hodge said. Investors should remember that Bitcoin is still highly volatile, even though the returns are eye-catching. “A single-asset ETF which invests in Bitcoin may rise dramatically but leaves investors exposed to a decline in cryptocurrency. We have seen this happen before.”
Betashares Video Games Esports ETF is the second best performer with a 90.3% return. This result reflects the strong growth of the global gaming market, which is currently valued at US$225billion and expected to double its value by 2032.
The top 10 performers also included ETFs that have exposure to gold, such as funds that invest gold bullion or gold mining companies.
“Gold has always been a popular safe haven for investors in volatile times, and this was no exception.” Mr Hodge noted. Gold prices rose as a result of increased geopolitical pressures and US tariffs. This was reflected by ETFs investing in gold.
ETFs with the worst performance: those that bet on bulls instead of bears
Betashares US Equities Strong Bear Complex ETF, ASX: BBUS, had the lowest return (a loss 31.4%) over the 12 months to 30 June 2025. This is due to BBUS’s emphasis on delivering positive leveraged returns If you want to know more about if US equities are experiencing a value decline.
The Global X Ultra Short Nasdaq 100 Complex (ASX : SNAS) and the Betashares Australian Equities Strength Bear Complex (ASX : BBOZ), which both suffered losses of 27,4% and 20,6%, round out the worst-performing three ETFs.
Themed and geared exchange-traded funds (ETFs) can be attractive to sophisticated investors looking for short-term investments, but they come with risks, such as the possibility of increased losses due to leverage. Mr Hodge. “This shows the importance of looking under the hood to see how an ETF can earn (or lose) you money.”
Vanguard, the People’s Choice!
Vanguard Australian Shares ETF(ASX:VAS) has claimed the title as Australia’s most popular ETF. It attracted the largest inflows of $3.7 billion over the course of the year, pushing funds under management to $20 billion.
Vanguard, which also holds the title of the second-most popular ETF with its Vanguard MSCI International (ASX) ETF, offers investors access to 1,200 global firms, including technology giants Apple, Nvidia, Amazon, and others.
The list of the most popular ETFs confirms simplicity and low fees as the top choices for investors, noted Mr Hodge.
Best performers by Category
- Australian shares Local equities performed strongly, with the SPDR S&P/ASX 200 ETF (ASX: STW) leading the pack, returning 15.0%.
- Global shares Several of the top performers are focused on Europe, including Global X EURO STOXX50 ETF (ASX : ESTX), who led with a 22.8% return.
- Australian Fixed Income: Betashares Australian Investment Grade Corporation Bond ETF (ASX CRED) was the top performer, up 9.8%.
- Australian high yield The SPDR MSCI Australia Select Dividend Yield (ASX:SYI) returned 17,7%, satisfying a strong demand for regular earnings.
- Commodities: Gold ETFs are the most popular in this category. The top performer is the Global X Gold Bullion (ASX:GXLD) ETF, which gained 43.0%.
- Australian ethics The Russell Australian Responsible Investment ETF, ASX: RARI, proved that sustainability does not have to be synonymous with low returns. It delivered a 20.2% return for the year.
“ETFs are a fantastic tool for investors of all levels, but the fundamentals remain the same – know what you own, keep costs low, and take a long-term view,” concluded Mr Hodge.
