Leading investment platform InvestSMART has released its 2025 ETF Scorecard, revealing Australia’s best and worst-performing exchange-traded funds (ETFs) for the year ending 30 June 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 five-star rating system, designed to help investors focus on long-term quality rather than short-term results.
“ETFs have made it easier and more affordable than ever to build a diversified portfolio, so it’s no surprise that Australians are turning to ETFs to build wealth, save for retirement and invest for their children’s future,” said Mr Ron Hodge, CEO of InvestSMART Group.
But as the number of ETFs grows, investors face the challenge of choosing funds that are the right option for them.
“This is where the InvestSMART 2025 ETF Scorecard can help,” said Mr Hodge. “The goal of the report is to give investors the tools and insights they need to choose ETFs with confidence, focus on quality over hype and build strong, long-term portfolios.”
Best performers: Digital currency dominates, gaming gains, and gold glitters
The DigitalX Bitcoin ETF (ASX: BTXX) was the year’s standout performer, delivering a staggering 95.5% return.
“It’s hard to ignore the extraordinary gains in digital currencies – especially Bitcoin – over the past year,” Mr Hodge said. “However, while the returns have been eye-catching, investors need to remember that Bitcoin remains highly volatile. A single-asset ETF that invests in Bitcoin can rise dramatically, but it does leave investors highly exposed to a downturn in the cryptocurrency, which we have seen happen in the past.”
With a return of 90.3%, the Betashares Video Games and Esports ETF (ASX: GAME) is a close second. This result reflects strong growth in the global gaming industry, currently valued at US$225 billion and forecast to almost double in value by 2032.
ETFs with exposure to gold were also heavily represented in the top 10 best performers, including funds that invest in gold bullion and gold mining companies.
“Investors have traditionally flocked to gold as a safe haven asset in times of volatility, and this year was no exception,” Mr Hodge noted. “Heightened geopolitical tensions and US tariff announcements contributed to a surge in gold prices, and this was reflected in ETFs that invest in gold bullion.”
Worst performers: ETFs that punted on bears, not bulls
The Betashares US Equities Strong Bear Complex ETF (ASX: BBUS) notched up the lowest returns (a loss of 31.4%) over the year to 30 June 2025. This reflects BBUS’s focus on delivering positive, leveraged returns if US equities experience a decline in value.
The Global X Ultra Short Nasdaq 100 Complex ETF (ASX: SNAS) and Betashares Australian Equities Strong Bear Complex ETF (ASX: BBOZ) round out the three worst-performing ETFs with losses of 27.4% and 20.6% respectively.
“Themed and geared ETFs can appeal to sophisticated investors seeking short-term plays, but they carry risks, including amplified losses through leverage,” said Mr Hodge. “This highlights the importance of taking a good look under the hood of an ETF to understand how it can make (or lose) money.”
Popularity contest: Vanguard is the people’s choice
The Vanguard Australian Shares ETF (ASX: VAS) claimed the title of Australia’s most popular ETF, attracting the largest inflows over the year of $3.7 billion and pushing funds under management past $20 billion.
Vanguard also secured the position of second most popular ETF, with the Vanguard MSCI International ETF (ASX: VGS), offering access to over 1,200 global companies, including tech giants like Apple, Nvidia, and Amazon.
“The list of most popular ETFs confirms that simplicity and low fees remain the top choice 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 top performers have a European focus, including the Global X EURO STOXX 50 ETF (ASX: ESTX), which led with a return of 22.8%.
- Australian fixed income: The top bond performer was the Betashares Australian Investment Grade Corporate Bond ETF (ASX: CRED), up 9.8%.
- Australian high yield: The SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI) returned 17.7%, satisfying strong demand for regular income.
- Commodities: Gold ETFs dominate this category, with the top performer, the Global X Gold Bullion ETF (ASX: GXLD), gaining 43.0%.
- Australian ethical: The Russell Australian Responsible Investment ETF (ASX: RARI) proved that sustainability doesn’t have to mean sacrificing high returns, delivering a 20.2% gain 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.
