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, the scorecard ranks the performance of ASX-listed ETFs across six key categories while also identifying the most and least popular funds by investor inflows.
The scorecard includes InvestSMART’s five-star rating system, developed to guide investors towards long-term quality rather than short-term trends.
Ron Hodge, CEO of InvestSMART Group, said ETFs have made it simpler and more affordable to build a diversified portfolio.
“[S]o, it’s no surprise that Australians are turning to ETFs to build wealth, save for retirement and invest for their children’s future.”
As the ETF landscape expands, however, investors are increasingly faced with a complex range of choices.
“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,” Hodge added.
Best performers: Bitcoin leads, gaming surges, gold glitters
The DigitalX Bitcoin ETF (ASX: BTXX) led the pack over the past year, delivering a return of 95.5 per cent.
“It’s hard to ignore the extraordinary gains in digital currencies – especially bitcoin – over the past year,” 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.”
The Betashares Video Games and Esports ETF (ASX: GAME) has followed closely behind, returning 90.3 per cent, driven by rapid growth in the global gaming industry, currently valued at US$225 billion and forecast to nearly double by 2032.
ETFs with exposure to gold have also featured prominently among the top performers, including those investing in both bullion and gold mining companies.
“Investors have traditionally flocked to gold as a safe haven asset in times of volatility, and this year has been no exception,” Hodge said. “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: Bearish bets falter
At the other end of the spectrum, the Betashares US Equities Strong Bear Complex ETF (ASX: BBUS) has posted the worst return, losing 31.4 per cent, reflecting the fund’s leveraged strategy, which aims to profit when US equities decline.
Also among the poorest performers have been the Global X Ultra Short Nasdaq 100 Complex ETF (ASX: SNAS), down 27.4 per cent, and the Betashares Australian Equities Strong Bear Complex ETF (ASX: BBOZ), which has fallen by 20.6 per cent.
“Themed and geared ETFs can appeal to sophisticated investors seeking short-term plays, but they carry risks, including amplified losses through leverage,” Hodge said. “This highlights the importance of taking a good look under the hood of an ETF to understand how it can make (or lose) money.”
Vanguard takes top spots for popularity
The Vanguard Australian Shares ETF (ASX: VAS) has emerged as Australia’s most popular ETF, attracting inflows of $3.7 billion and pushing its funds under management past $20 billion.
The Vanguard MSCI International ETF (ASX: VGS) has claimed second place in popularity, providing investors with exposure to over 1,200 global companies, including major tech firms such as Apple, Nvidia and Amazon.
“The list of most popular ETFs confirms that simplicity and low fees remain the top choice for investors,” Hodge added.
Top performers by category
Across key ETF categories, several funds have stood out.
In Australian shares, the SPDR S&P/ASX 200 ETF (ASX: STW) has led with a 15.0 per cent return.
Globally, European-focused funds have performed well, with the Global X EURO STOXX 50 ETF (ASX: ESTX) topping its category with a 22.8 per cent gain.
In fixed income, the Betashares Australian Investment Grade Corporate Bond ETF (ASX: CRED) has led with a return of 9.8 per cent, while the SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI) has been the strongest in the high-yield category, returning 17.7 per cent.
Meanwhile, the Global X Gold Bullion ETF (ASX: GXLD) led in commodities with a 43.0 per cent return, while the Russell Australian Responsible Investment ETF (ASX: RARI) topped the ethical category with a 20.2 per cent gain.
“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,” Hodge said.
