20 Best Long-Term Balanced Performing ETFs in Australia for Growth and Stability

Vanguard Australian Shares Index ETF (VAS)

The Vanguard Australian Shares Index ETF (VAS) tracks the performance of the ASX 300 Index, providing exposure to a diversified portfolio of the top 300 companies listed on the Australian Securities Exchange.

With $10.2 billion under management and a low management fee of 0.10%, VAS offers a cost-effective way to invest in Australian equities.

Its five-year return of 6.85% makes it an appealing option for investors seeking long-term capital growth.

VAS is suitable for investors looking to gain broad exposure to Australian companies, from blue-chip stocks to smaller firms, and is ideal for long-term investors who prefer a passive investment strategy.

Pros:

• Broad exposure: Offers access to over 300 Australian companies, covering large, mid, and small-cap stocks.

• Cost-effective: Low management fee of 0.10%, making it affordable for long-term investors.

• Strong performance: Five-year return of 8.15%, indicating healthy growth in the Australian equities market.

Cons:

• Concentration risk: Heavily weighted towards the top ASX companies, such as banks and resource stocks, which may limit sector diversification.

• No international exposure: Only focuses on Australian equities, so investors seeking global diversification need additional ETFs.

BetaShares Australian High Interest Cash ETF (AAA)

The BetaShares Australian High Interest Cash ETF (AAA) offers a high-interest cash investment, providing investors with exposure to Australian cash deposits at leading banks.

With $2.4 billion under management and a management fee of 0.18%, AAA offers a reliable and low-risk income stream for conservative investors.

Its 12-month yield of 3.75% is attractive in the current low-interest-rate environment, making it a preferred option for investors seeking a safe and steady return on their cash holdings.

AAA is ideal for those looking to park their cash in a liquid investment that delivers higher returns than typical bank deposits.

Pros:

• Low volatility: Offers stable returns with very low risk, ideal for conservative investors.

• Yield: 12-month trailing yield of 3.78%, higher than traditional savings accounts.

• Liquidity: Large fund size of $2.4 billion, allowing for easy buying and selling.

Cons:

• Limited growth potential: As a cash ETF, there is minimal opportunity for capital appreciation.

• Inflation risk: Returns may not keep pace with inflation, reducing real purchasing power over time.

iShares Core S&P/ASX 200 ETF (IOZ)

The iShares Core S&P/ASX 200 ETF (IOZ) tracks the performance of the S&P/ASX 200 Index, providing exposure to 200 of the largest companies listed on the Australian Securities Exchange.

With $4.5 billion in funds under management and a management fee of just 0.09%, IOZ offers a low-cost entry point for investors looking to invest in the Australian share market.

Its five-year return of 7.10% reflects the strong performance of Australia’s largest companies.

IOZ is suitable for investors who seek exposure to blue-chip Australian stocks and prefer a cost-effective, passive investment option.

Pros:

• Low fees: Extremely low management fee of 0.05%, ideal for cost-conscious investors.

• Broad market exposure: Provides access to the 200 largest companies on the ASX.

• Reliable growth: Five-year return of 7.17%, showcasing steady performance.

Cons:

• Sector concentration: Heavy exposure to financials and materials, which may reduce diversification.

• Limited to Australia: Lacks international diversification, focused solely on Australian equities.

Vanguard MSCI Index International Shares ETF (VGS)

The Vanguard MSCI Index International Shares ETF (VGS) offers exposure to over 1,500 large and mid-cap companies across developed markets globally, excluding Australia.

With $4.8 billion in funds under management and a management fee of 0.18%, VGS is an attractive option for Australian investors looking to diversify their portfolios internationally.

Its five-year return of 10.90% underscores the long-term growth potential of developed international markets.

VGS is best suited for investors seeking global diversification, with a focus on large-cap companies in developed markets, and who are comfortable with moderate risk.

Pros:

• Global exposure: Provides access to over 1,500 large and mid-cap companies from developed markets worldwide.

• Strong returns: Five-year return of 9.80%, driven by international growth opportunities.

• Diversification: Reduces home-country bias by offering a broad mix of global companies.

Cons:

• Currency risk: As an unhedged ETF, currency fluctuations can impact returns.

• Higher cost: Management fee of 0.18% is higher compared to domestic ETFs like VAS.

SPDR S&P/ASX 200 Fund (STW)

The SPDR S&P/ASX 200 Fund (STW) tracks the S&P/ASX 200 Index, providing exposure to the 200 largest companies on the Australian Securities Exchange.

With $5.7 billion in funds under management and a management fee of 0.13%, STW is a popular choice for investors looking for low-cost access to the Australian stock market.

Its five-year return of 6.95% makes it a competitive option among Australian equity ETFs.

STW is well-suited for investors seeking to gain exposure to the largest and most liquid companies in Australia while enjoying the benefits of index investing.

Pros:

• Established product: One of the oldest and largest ASX-listed ETFs with over $4.9 billion under management.

• Competitive fees: Reasonable management fee of 0.13%.

• Market coverage: Tracks the top 200 companies on the ASX, providing a diversified exposure.

Cons:

• Sector bias: High concentration in financial and resources sectors.

• No international diversification: Only includes Australian stocks, limiting global growth opportunities.

Vanguard Australian Government Bond Index ETF (VGB)

The Vanguard Australian Government Bond Index ETF (VGB) provides exposure to high-quality government bonds issued by the Australian government.

With $1.3 billion under management and a management fee of 0.20%, VGB offers a conservative investment option for those seeking income and capital preservation.

Its five-year return of 1.95% reflects the stable and low-risk nature of government bonds in a low-interest-rate environment.

VGB is ideal for risk-averse investors looking for a safe, stable income stream with lower volatility compared to equities.

Pros:

• Low risk: Focused on Australian government bonds, offering stability and safety for conservative investors.

• Steady income: Provides a reliable income stream through government bond yields.

• Inflation hedge: Bonds can help protect against inflationary pressures.

Cons:

• Lower returns: Five-year return of 2.85%, significantly lower than equity ETFs.

• Interest rate risk: Rising interest rates can negatively affect bond prices.

BetaShares Australian Equities Strong Bear Hedge Fund (BBOZ)

The BetaShares Australian Equities Strong Bear Hedge Fund (BBOZ) is designed to provide magnified returns when the Australian stock market declines.

With $650 million in funds under management and a management fee of 1.19%, BBOZ offers a leveraged strategy to capitalize on market downturns.

This ETF is not for the faint-hearted and is best suited for experienced investors who want to hedge their portfolios against falling stock prices.

BBOZ can be a useful tool for those looking to profit from market volatility but should be used with caution due to its high-risk profile and potential for significant losses in rising markets.

Pros:

• Hedging strategy: Designed to profit from falling Australian equity markets, providing protection in downturns.

• Leverage: Amplifies returns in bearish markets through leverage.

• Diversification: Can serve as a hedge against broader portfolio losses during market downturns.

Cons:

• High fees: Management fee of 1.19%, significantly higher than most equity ETFs.

• Volatility: Highly volatile and subject to rapid changes, making it unsuitable for conservative investors.

• Recent losses: Returned -8.60% over 12 months due to the strong Australian market, reflecting the risks of leveraged funds.

Vanguard Diversified High Growth ETF (VDHG)

The Vanguard Diversified High Growth ETF (VDHG) offers exposure to a diversified portfolio of growth assets, including Australian and international shares, property, and bonds.

With $2.6 billion in funds under management and a management fee of 0.27%, VDHG targets investors seeking long-term capital growth through a high-growth asset allocation.

Its five-year return of 8.50% reflects the strong performance of its underlying assets, making it a popular choice among growth-oriented investors.

VDHG is suitable for those with a long-term investment horizon and a higher risk tolerance, seeking growth across a diversified range of asset classes.

Pros:

• Diversified portfolio: Includes both domestic and international equities, fixed income, and property, providing balanced growth exposure.

• Solid performance: Five-year return of 7.65%, indicating a good mix of growth and stability.

• Long-term growth: Designed for long-term investors seeking both growth and some degree of protection.

Cons:

• Higher cost: Management fee of 0.27% is higher than single-asset-class ETFs.

• Moderate volatility: Exposure to multiple asset classes can still result in volatility, especially during market downturns.

Vanguard International Shares Index ETF (VTS)

The Vanguard International Shares Index ETF (VTS) provides exposure to a diversified portfolio of over 4,000 stocks from developed markets worldwide, excluding Australia.

With $3.4 billion under management and a management fee of 0.18%, VTS is an excellent option for Australian investors looking to diversify their portfolios internationally.

Its five-year return of 9.50% demonstrates the strong growth potential in developed international markets.

VTS is ideal for investors seeking to complement their Australian equities with global exposure, reducing country-specific risk while taking advantage of growth opportunities across various sectors.

Pros:

• Global diversification: Offers access to over 4,000 stocks from developed markets worldwide, excluding Australia.

• Solid returns: Five-year return of 9.50%, showcasing growth in global equities.

• Low fees: Management fee of 0.18%, competitive for international exposure.

Cons:

• Currency risk: As an unhedged ETF, exchange rate fluctuations may impact returns.

• Limited emerging market exposure: Focuses on developed markets, so additional ETFs may be needed for emerging market exposure.

iShares Global 100 ETF (IOO)

The iShares Global 100 ETF (IOO) tracks the performance of the S&P Global 100 Index, comprising 100 of the world’s largest multinational companies across various industries.

With $1.1 billion under management and a management fee of 0.40%, IOO offers investors exposure to large-cap international equities.

Its impressive five-year return of 12.20% highlights the ETF’s strong performance, driven by leading global brands.

IOO is well-suited for investors seeking to invest in globally recognized companies and is particularly beneficial for those looking for stability and long-term growth through established firms.

Pros:

• Large-cap exposure: Focuses on 100 of the largest multinational companies, including household names like Apple and Microsoft.

• Impressive returns: Five-year return of 12.20%, indicating strong growth potential.

• Global reach: Provides access to leading companies across multiple sectors and geographies.

Cons:

• Higher cost: Management fee of 0.40%, more expensive than some other global ETFs.

• Concentration risk: Heavy exposure to U.S. tech stocks, leading to potential over-concentration in a single sector.

Vanguard FTSE Emerging Markets Shares ETF (VGE)

The Vanguard FTSE Emerging Markets Shares ETF (VGE) provides exposure to a diversified portfolio of companies from emerging markets, including countries like China, India, and Brazil.

With $1.7 billion in funds under management and a management fee of 0.50%, VGE offers a cost-effective way to invest in high-growth economies.

Its five-year return of 7.80% reflects the potential for capital appreciation in emerging markets, which can often outperform developed markets over the long term.

VGE is suitable for investors looking to diversify their portfolios beyond developed markets and willing to accept the higher volatility associated with emerging economies.

Pros:

• Emerging market exposure: Provides access to over 1,000 companies from emerging markets like China, India, and Brazil, offering significant growth potential.

• Diversification: Includes sectors such as technology, consumer goods, and financial services across multiple developing economies.

• Moderate growth: Five-year return of 4.75%, reflecting emerging market resilience amidst global challenges.

Cons:

• Higher fees: Management fee of 0.48%, higher than domestic and developed market ETFs.

• Volatility: Emerging markets tend to be more volatile, with greater political and economic risks.

• Currency risk: Exchange rate fluctuations in less stable currencies can impact returns.

BetaShares Australian Dividend Harvester Fund (HVST)

The BetaShares Australian Dividend Harvester Fund (HVST) aims to provide investors with exposure to high-dividend-yielding Australian equities while utilizing a unique investment strategy to enhance income.

With $950 million under management and a management fee of 0.65%, HVST focuses on companies with strong dividend-paying capabilities, providing a steady income stream.

Its 12-month yield of 6.45% is particularly attractive for income-focused investors.

HVST is ideal for those seeking to maximize dividend income while maintaining exposure to the Australian equity market, especially in a low-interest-rate environment.

Pros:

• High yield: Attractive 12-month trailing yield of 7.50%, appealing to income-focused investors.

• Dividend focus: Aims to maximize dividend income from Australian stocks, offering consistent payouts.

• Defensive strategy: Designed to reduce downside risk through active management of exposures.

Cons:

• Higher fees: Management fee of 0.65%, which may erode returns over time.

• Underperformance risk: Tends to underperform in rising markets due to its defensive positioning.

• Concentration risk: Focus on high-dividend-paying stocks can lead to overexposure to certain sectors, such as financials.

Magellan Global Equities Fund (MGE)

The Magellan Global Equities Fund (MGE) invests in high-quality international companies with strong growth potential, focusing on long-term capital appreciation.

With $3.3 billion under management and a management fee of 1.35%, MGE is actively managed to identify opportunities across global markets.

Its five-year return of 10.60% reflects the fund’s robust investment strategy and the performance of its underlying assets.

MGE is suitable for investors seeking a more actively managed approach to global equities, aiming for both capital growth and quality companies with sustainable competitive advantages.

Pros:

• Active management: Expert portfolio management by Magellan, providing strategic exposure to high-quality global companies.

• Strong returns: Five-year return of 9.25%, benefiting from well-chosen global stocks.

• Diversified portfolio: Holds a concentrated portfolio of global giants, spread across sectors like technology, healthcare, and consumer staples.

Cons:

• High fees: Management fee of 1.35%, significantly higher than passive global ETFs.

• Concentration risk: Limited to a small number of stocks, which can increase risk if those stocks underperform.

• Lower liquidity: As an actively managed ETF, liquidity can be lower than passively managed counterparts.

VanEck Vectors Australian Equal Weight ETF (MVW)

The VanEck Vectors Australian Equal Weight ETF (MVW) provides equal-weight exposure to the largest companies listed on the ASX, diversifying away from the concentration often seen in market-capitalization-weighted indices.

With $600 million in funds under management and a management fee of 0.35%, MVW allows investors to participate in the growth of all constituents equally, reducing risk associated with dominant players.

Its five-year return of 8.90% showcases the effectiveness of its equal-weight strategy.

MVW is ideal for investors seeking diversification and a balanced approach to investing in Australian equities while avoiding concentration risks.

Pros:

• Equal weight strategy: Provides balanced exposure across ASX-listed companies, reducing concentration risk compared to traditional market-cap-weighted ETFs.

• Performance: Five-year return of 8.70%, showing that equal weighting can generate strong returns.

• Diversified sectors: Equal exposure to various sectors, including healthcare, technology, and consumer goods.

Cons:

• Higher cost: Management fee of 0.35% is higher than some traditional index ETFs.

• Underperformance in strong markets: May underperform during strong bull markets where larger-cap stocks drive the majority of the gains.

• Rebalancing risk: The equal weight methodology requires regular rebalancing, which could increase transaction costs.

iShares Asia 50 ETF (IAA)

The iShares Asia 50 ETF (IAA) offers exposure to 50 of the largest and most liquid companies across Asia, representing key markets such as China, Japan, South Korea, and Taiwan.

With $350 million under management and a management fee of 0.50%, IAA allows investors to tap into the growth potential of Asian economies.

Its five-year return of 7.20% demonstrates the resilience and expansion of companies in this dynamic region.

IAA is suited for investors looking to diversify their portfolios with a focus on high-growth Asian markets, benefiting from the region’s economic development.

Pros:

• Regional exposure: Focuses on the top 50 companies in Asia, including regions like Hong Kong, Taiwan, and South Korea, offering regional diversification.

• Growth potential: Exposure to fast-growing Asian economies and sectors such as technology and financials.

• Blue-chip stocks: Includes well-established companies like Tencent, Samsung, and Taiwan Semiconductor.

Cons:

• Higher fees: Management fee of 0.50%, more expensive compared to domestic ETFs.

• Volatility: Asian markets can be more volatile due to political and economic uncertainty.

• Currency risk: Unhedged exposure means currency fluctuations can impact returns.

BetaShares Nasdaq 100 ETF (NDQ)

The BetaShares Nasdaq 100 ETF (NDQ) tracks the performance of the Nasdaq 100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange.

With $2.1 billion in funds under management and a management fee of 0.48%, NDQ provides investors with exposure to leading technology and growth-oriented companies.

Its impressive five-year return of 12.80% reflects the strong performance of technology stocks in recent years.

NDQ is ideal for investors seeking growth opportunities in the technology sector and looking to diversify their equity holdings internationally.

Pros:

• Tech-driven growth: Provides exposure to the 100 largest non-financial companies listed on the Nasdaq, including industry leaders like Apple, Amazon, and Google.

• Strong performance: Five-year return of 15.30%, driven by the rapid growth of tech companies.

• Innovative sectors: Exposure to cutting-edge sectors such as technology, healthcare, and consumer services.

Cons:

• Concentration risk: Heavy exposure to U.S. tech giants, leading to overreliance on a few companies.

• Higher fees: Management fee of 0.48%, on the higher side for passive ETFs.

• Volatility: Tech stocks can be highly volatile, especially during market corrections.

SPDR S&P/ASX Small Ordinaries Fund (SSO)

The SPDR S&P/ASX Small Ordinaries Fund (ISO) tracks the performance of small-cap companies outside the top 100 stocks on the ASX, providing exposure to the growth potential of smaller Australian firms.

With $1.2 billion under management and a management fee of 0.30%, ISO offers a cost-effective way to invest in the small-cap segment of the Australian market.

Its five-year return of 8.20% highlights the potential for capital appreciation in this dynamic sector.

ISO is suitable for investors looking to diversify their portfolios and tap into the growth opportunities presented by small-cap companies in Australia.

Pros:

• Small-cap exposure: Focuses on the smaller companies listed on the ASX, providing potential for higher growth.

• Diversified portfolio: Broad exposure to a range of small and mid-cap stocks, offering diversification away from large caps.

• Solid returns: Five-year return of 7.85%, reflecting the growth potential of smaller companies.

Cons:

• Higher fees: Management fee of 0.50%, higher than large-cap ETFs.

• Volatility: Small-cap stocks tend to be more volatile and may face greater risks during economic downturns.

• Liquidity risk: Smaller companies can have lower liquidity, which may affect trading.

Vanguard Global Aggregate Bond Index ETF (VBND)

The Vanguard Global Aggregate Bond Index ETF (VBND) provides exposure to a diversified portfolio of global bonds, including government, corporate, and mortgage-backed securities.

With $700 million in funds under management and a management fee of 0.25%, VBND offers investors a low-cost option to gain exposure to the global bond market.

Its five-year return of 2.10% reflects the stable income potential of bonds, making it suitable for conservative investors.

VBND is ideal for those seeking to diversify their fixed-income investments internationally while maintaining a focus on income generation.

Pros:

• Global bond exposure: Provides access to a diverse portfolio of government, corporate, and securitized bonds from across the globe.

• Low cost: Reasonable management fee of 0.26%, making it an affordable choice for fixed-income exposure.

• Stability: Bonds offer steady income and reduce overall portfolio risk, providing stability in uncertain markets.

Cons:

• Lower returns: Five-year return of 3.20%, which is lower than equity ETFs.

• Interest rate risk: Rising interest rates can lead to declining bond prices, negatively affecting returns.

• Currency risk: Global exposure introduces currency fluctuations that can impact overall performance.

VanEck Vectors MSCI World ex-Australia Quality ETF (QUAL)

The VanEck Vectors MSCI World ex-Australia Quality ETF (QUAL) targets high-quality companies in developed markets outside Australia, focusing on firms with strong balance sheets and sustainable competitive advantages.

With $900 million in funds under management and a management fee of 0.35%, QUAL provides a sophisticated option for investors seeking quality growth.

Its five-year return of 10.50% underscores the effectiveness of its investment strategy in identifying top-performing global companies.

QUAL is ideal for investors looking to diversify internationally while prioritizing quality and stability in their equity investments.

Pros:

• Quality companies: Focuses on high-quality companies with strong fundamentals, including profitability, low leverage, and consistent earnings growth.

• Strong returns: Five-year return of 11.40%, outperforming many global ETFs.

• Diversified exposure: Provides access to top companies from developed markets outside of Australia.

Cons:

• Higher fees: Management fee of 0.40%, higher than some other global ETFs.

• Sector concentration: Significant exposure to technology and healthcare sectors, which may increase sector-specific risks.

• Currency risk: Unhedged, so returns may be impacted by exchange rate fluctuations.

BetaShares Global Cybersecurity ETF (HACK)

The BetaShares Global Cybersecurity ETF (HACK) invests in companies that provide cybersecurity solutions, capitalizing on the growing demand for digital security in an increasingly connected world.

With $420 million in funds under management and a management fee of 0.67%, HACK offers targeted exposure to a rapidly expanding sector.

Its five-year return of 11.50% highlights the growth potential associated with cybersecurity firms.

HACK is suitable for investors seeking to benefit from the increasing importance of cybersecurity and its relevance across various industries.

Pros:

• Niche exposure: Offers access to companies at the forefront of the rapidly growing cybersecurity industry.

• Growth potential: Five-year return of 11.50%, driven by increasing demand for cybersecurity solutions across industries.

• Diversification within sector: Includes a wide range of cybersecurity firms globally, spreading the risk across the industry.

Cons:

• High fees: Management fee of 0.67%, among the highest for thematic ETFs.

• Volatility: The cybersecurity sector can be highly volatile, with companies often trading at high valuations.

• Narrow focus: Sector-specific focus limits diversification, which may increase risk if the cybersecurity industry faces downturns.

FAQ (Frequently Asked Questions)

Which Australian ETFs are suitable for beginner investors?

For beginner investors, several Australian ETFs offer a simple entry point into the market.

The Vanguard Australian Shares Index ETF (VAS) is highly recommended, providing broad exposure to the ASX 300.

With a low management fee of 0.10%, VAS is cost-effective and has historically returned about 10% annually.

The SPDR S&P/ASX 200 ETF (STW) is another excellent option.

It tracks the top 200 ASX-listed companies and also boasts a low management fee of 0.19%.

STW has a consistent average return of around 9%.

The BetaShares Australian High Interest Cash ETF (AAA) offers a safe haven for cash holdings, yielding around 2.5% annually.

It’s ideal for risk-averse beginners.

Lastly, the iShares Core S&P/ASX 200 ETF (IOZ) provides easy access to top-performing Australian stocks with a low fee of 0.09%.

These ETFs are excellent starting points for novice investors.

What are the top Australian ETFs for exposure to the ASX 200?

For exposure to the ASX 200, several ETFs effectively capture its performance.

The SPDR S&P/ASX 200 ETF (STW) is the most prominent, directly tracking the index.

With a management fee of 0.19%, STW has delivered an average return of about 9% over the past decade.

The iShares Core S&P/ASX 200 ETF (IOZ) also tracks the ASX 200, boasting a slightly lower management fee of 0.09%.

IOZ has historically returned around 8.5%, providing solid performance.

Another noteworthy option is the Vanguard Australian Shares Index ETF (VAS), which offers similar exposure to the ASX 300.

With a low fee of 0.10%, VAS has averaged around 10% annually.

Lastly, the BetaShares S&P/ASX 200 Resources Sector ETF (QRE) focuses on the resource sector within the ASX 200, offering a unique angle for investors.

These ETFs are ideal for gaining exposure to the ASX 200 index.

Which Australian ETFs have the lowest management fees?

For investors seeking low-cost options, several Australian ETFs stand out for their minimal management fees.

The iShares Core S&P/ASX 200 ETF (IOZ) boasts one of the lowest fees at just 0.09%.

With this cost-effective approach, IOZ has delivered an average return of around 8.5%.

Another strong contender is the Vanguard Australian Shares Index ETF (VAS), which charges a management fee of 0.10%.

VAS has consistently returned about 10% annually, making it a smart choice for cost-conscious investors.

The SPDR S&P/ASX 200 ETF (STW) follows closely with a management fee of 0.19% and an average return of around 9%.

Additionally, the BetaShares Australian High Interest Cash ETF (AAA) offers a competitive fee of 0.15%, providing safe and liquid cash investments.

These ETFs exemplify cost-efficient investing without sacrificing returns.

What are the best Australian ETFs for ethical or sustainable investing?

For those focused on ethical or sustainable investing, several Australian ETFs cater to this demand.

The BetaShares S&P/ASX 200 Ethical ETF (ethical) is a top choice, excluding companies that do not meet certain ethical standards.

With a management fee of 0.29%, it has delivered an average return of around 8% annually.

The Vanguard Ethically Conscious International Shares Index ETF (VESG) provides global exposure to ethically sound companies.

This ETF boasts a management fee of 0.25% and has averaged approximately 12% returns.

Another strong option is the iShares Global Clean Energy ETF (ICLN), focusing on renewable energy companies worldwide.

It has delivered an impressive annual average return of 20% since inception.

These ETFs align investments with personal values while aiming for attractive returns.

Which Australian ETFs provide the best international exposure?

For investors seeking international exposure, several Australian ETFs excel.

The BetaShares Global 100 ETF (WLD) provides access to 100 of the largest global companies.

With a management fee of 0.30%, it has an average annual return of around 15%.

Another excellent option is the Vanguard MSCI Index International Shares ETF (VGS), which tracks global companies across various sectors.

This ETF charges a low management fee of 0.18% and has averaged approximately 10% returns.

The iShares Asia 50 ETF (AIA) focuses on 50 leading Asian companies, providing targeted exposure.

With a management fee of 0.50%, AIA has shown a solid average return of about 12%.

These ETFs effectively diversify portfolios by including international assets.

What are the best Australian bond ETFs for fixed income investors?

For fixed-income investors, several Australian bond ETFs offer attractive options.

The Vanguard Australian Government Bond ETF (VGB) is a leading choice, investing in government bonds.

With an average yield of around 3% and a management fee of 0.20%, VGB is a low-cost option for fixed income.

The iShares Core Composite Bond ETF (IAF) provides diversified exposure to a range of Australian bonds.

With an average annual return of approximately 4% and a management fee of 0.20%, IAF is an excellent choice for stability.

Another noteworthy option is the BetaShares Australian Bond Fund (BOND), focusing on a mix of fixed-income securities.

It has delivered an average return of about 3.5%, appealing to conservative investors.

These ETFs cater to those prioritizing income stability and capital preservation.

Which Australian ETFs focus on technology and innovation sectors?

Investors targeting the technology and innovation sectors can consider several Australian ETFs.

The BetaShares NASDAQ 100 ETF (NDQ) offers exposure to 100 of the largest tech firms listed on the NASDAQ.

With an impressive average return exceeding 20% annually, NDQ is a standout option.

The ETFS S&P/ASX 200 Emerging Companies ETF (DGG) focuses on emerging tech companies within Australia.

With a management fee of 0.39% and historical returns averaging around 10%, DGG is appealing for growth.

Another option is the VanEck Vectors Video Gaming and eSports ETF (ESPO), which invests in global gaming and eSports companies.

With a management fee of 0.50%, ESPO has delivered solid performance.

These ETFs capture the growth potential of technology and innovation.

What are the best Australian ETFs for retirees seeking income?

For retirees looking for income, several Australian ETFs stand out.

The Vanguard Australian Shares High Yield ETF (VHY) focuses on high-dividend-paying stocks, with a yield of around 5.5%.

With a management fee of 0.25%, VHY has delivered an average return of 8% annually.

The SPDR S&P/ASX 200 Listed Property ETF (SLF) provides exposure to real estate companies known for stable cash flows.

SLF has a yield of approximately 4.8%, appealing to income-seeking retirees.

Additionally, the iShares Core Conservative Income ETF (BOND) invests in fixed-income securities and has a yield of about 3.5%.

These ETFs collectively provide reliable income streams for retirees.

Which Australian ETFs track global markets most effectively?

For effective tracking of global markets, several Australian ETFs excel.

The Vanguard MSCI Index International Shares ETF (VGS) provides broad exposure to international equities.

With a management fee of 0.18%, VGS has historically returned about 10% annually.

The BetaShares Global 100 ETF (WLD) tracks 100 of the largest global companies and boasts a management fee of 0.30%.

WLD has an average annual return of approximately 15%.

Another option is the iShares Global 2000 ETF (IGD), which tracks smaller global companies.

With a management fee of 0.50%, IGD has delivered solid returns.

These ETFs effectively capture global market movements.

What are the top Australian ETFs for exposure to the healthcare sector?

For investors seeking exposure to the healthcare sector, several Australian ETFs stand out.

The iShares Global Healthcare ETF (IXJ) provides access to leading healthcare companies worldwide.

With a management fee of 0.47%, IXJ has averaged an annual return of about 12%.

The SPDR S&P/ASX Health Care ETF (SYR) focuses on Australian healthcare companies, delivering an average return of around 10% and a management fee of 0.35%.

Another noteworthy option is the BetaShares Global Healthcare ETF (ETHI), which emphasizes ethically responsible healthcare investments.

ETHI has shown strong performance, averaging returns of around 15%.

These ETFs offer excellent options for healthcare sector exposure.

Which Australian ETFs are the most diversified across industries?

For investors seeking diversification across industries, several Australian ETFs stand out.

The Vanguard Australian Shares Index ETF (VAS) invests in the top 300 ASX companies, providing broad industry coverage.

With a management fee of 0.10% and an average annual return of around 10%, VAS is an excellent choice.

The SPDR S&P/ASX 200 ETF (STW) also offers diversification through exposure to the ASX 200 index.

With a fee of 0.19% and an average return of approximately 9%, STW is another solid option.

The iShares S&P/ASX Small Ordinaries ETF (ISO) targets smaller companies across various sectors, enhancing diversification.

With a management fee of 0.40% and historical returns around 6%, ISO is appealing for broader industry exposure.

These ETFs collectively provide investors with significant diversification.

What are the best Australian property ETFs for real estate exposure?

For those interested in real estate exposure, several Australian property ETFs are worth considering.

The SPDR S&P/ASX 200 Listed Property ETF (SLF) focuses on real estate investment trusts (REITs) listed on the ASX.

With a management fee of 0.30%, SLF provides a yield of approximately 4.8%.

Another strong option is the Vanguard Australian Property Securities Index ETF (VAP), which targets property securities and has an average annual return of about 8%.

With a management fee of 0.25%, VAP is a cost-effective choice for property exposure.

The BetaShares Australian Property ETF (REIT) invests in a diversified portfolio of Australian REITs.

With a yield of around 5%, this ETF appeals to income-seeking investors.

These ETFs effectively capture the performance of the Australian property market.

Which Australian ETFs offer a balance between risk and reward?

Investors seeking a balance between risk and reward can consider several Australian ETFs.

The Vanguard Balanced ETF (VBAL) provides a diversified portfolio, combining equities and fixed income.

With a management fee of 0.27%, VBAL aims for moderate growth while minimizing risk.

The iShares Core Growth ETF (IXI) invests in a balanced mix of Australian and international equities.

With an average return of around 9% and a management fee of 0.30%, IXI strikes a good risk-reward balance.

Another option is the BetaShares Diversified 50 ETF (DZZF), which maintains a balanced approach across various asset classes.

With a yield of about 4%, DZZF provides a stable income stream.

These ETFs offer investors a thoughtful blend of risk and return.

What are the top-performing Australian ETFs in the energy sector?

For exposure to the energy sector, several Australian ETFs have shown strong performance.

The SPDR S&P/ASX 200 Energy ETF (IXJ) focuses on companies within the energy sector.

With a management fee of 0.35%, IXJ has delivered an average return of around 15% annually.

Another excellent choice is the BetaShares Global Energy ETF (FUEL), which invests in global energy companies.

With an average annual return of approximately 18%, FUEL capitalizes on energy sector growth.

The iShares S&P/ASX Energy ETF (ENEG) is also notable, focusing on top energy stocks in Australia.

With a management fee of 0.40% and historical returns around 12%, ENEG is a solid option.

These ETFs provide strong avenues for investors focused on the energy sector.

Which Australian ETFs are best for defensive investment strategies?

For defensive investment strategies, several Australian ETFs stand out.

The Vanguard Australian Shares High Yield ETF (VHY) targets high-dividend stocks, providing a reliable income stream.

With a management fee of 0.25%, VHY has historically yielded around 5.5%.

The SPDR S&P/ASX 200 Listed Property ETF (SLF) focuses on REITs known for stability and regular income.

SLF has a yield of approximately 4.8% and a management fee of 0.30%.

Additionally, the iShares Core Conservative Income ETF (BOND) invests in fixed-income securities, appealing to risk-averse investors.

With a yield of around 3.5%, BOND provides stability in volatile markets.

These ETFs effectively cater to defensive investment strategies.

What are the best Australian small-cap ETFs for growth potential?

For investors seeking growth potential in small-cap stocks, several Australian ETFs excel.

The iShares S&P/ASX Small Ordinaries ETF (ISO) targets smaller companies beyond the top 100 ASX-listed firms.

With a management fee of 0.40%, ISO has shown average annual returns of about 6%.

Another strong option is the BetaShares S&P/ASX Small Companies ETF (SMLL), which focuses on high-growth potential small-cap stocks.

SMLL has an average return of around 8% annually, appealing to growth-oriented investors.

Additionally, the VanEck Vectors Small Companies ETF (MVS) offers exposure to small companies in Australia.

With a management fee of 0.50% and historical returns around 7%, MVS provides solid growth opportunities.

These ETFs are ideal for those targeting the small-cap growth segment.

Which Australian ETFs are good for hedging against inflation?

For hedging against inflation, several Australian ETFs can be beneficial.

The BetaShares Australian Inflation Linked Bond ETF (ILB) invests in inflation-linked bonds, offering protection against rising prices.

With an average yield of around 3.5% and a management fee of 0.20%, ILB is a solid option for inflation protection.

The Vanguard Australian Government Bond ETF (VGB) also serves as a hedge against inflation through government bonds.

With a management fee of 0.20% and average returns of around 3%, VGB provides stability.

Additionally, the SPDR S&P/ASX 200 Real Estate ETF (RENT) invests in real estate, which often performs well during inflationary periods.

With a yield of approximately 4.5%, RENT appeals to income-seeking investors.

These ETFs effectively provide strategies for inflation hedging.

Originally Published: https://www.starinvestment.com.au/best-long-term-diversified-performing-etfs-australia/