Key takeaways:

• On a five-year basis, large-cap household names have been the catalyst for a number of funds that focus on high-quality or blue-chip stocks

• Across the last three years, ETFs providing exposure to energy markets have been among the best performers due to volatile changes in the global energy mix

• Tech ETFs dominate the performance charts over the last year, including four out of the top five funds coming from the Global X line-up

The Selfwealth community has shown time and time again that ETFs are a favourite investment vehicle for diversified exposure to the stock market. Whether it be index-tracking ETFs, geared funds, or exchange-traded funds investing in key thematics, the options are plentiful.

With so many ETFs to choose from, we’re looking back at some of the best performing funds across recent years. While past performance is no indicator of future performance, and the returns of these funds are in no way guaranteed to continue, the following data may help investors gain insights about the trends behind the most successful ETFs of recent time.

The following data was taken from the ASX’s June Investment Products Report as at June 30, 2023, and returns nominated may differ slightly from those published by the respective fund manager. Before investing in any ETFs, you should consult the Product Disclosure Statement, which will be available on the fund’s website.

Read here for a beginner’s guide on how to buy ETFs in Australia.

For a selection of top ETFs that Selfwealth members buy, learn more here.

The Best ETFs Over Five Years (FY19 to FY23)

With the highest performance of any ASX-listed ETF over the last five years, the BetaShares Nasdaq 100 ETF (ASX: NDQ) has delivered an annualised return of 19.11% over that period. 

The ETF, which is highly popular in the Selfwealth community, aims to track the performance of the Nasdaq 100 Index, before fees and expenses. The Nasdaq 100 features the 100 largest non-financial companies listed on the Nasdaq market, predominantly with a technology focus. Over the last five years the Nasdaq 100 has soared more than 110% thanks to investors’ appetite for tech trends.

You can learn more about NDQ in this interview with BetaShares, and our analysis here.

In second place, the VanEck Morningstar Wide Moat ETF (ASX: MOAT) has delivered an annualised return of 16.46% in the five years leading up to the end of FY23. Based on the input from Morningstar’s equity research team, it gives investors exposure to a diversified portfolio of “attractively priced US companies with sustainable competitive advantages”.

Just a fraction behind, the BetaShares Global Sustainability Leaders ETF (ASX: ETHI) takes out third spot thanks to a five-year return of 16.17% p.a. The fund has benefitted from exposure to blue-chip international holdings across the tech, retail, healthcare, and industrial sectors.

ETHI aims to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as “Climate Leaders”. These stocks have also passed screens to exclude companies with direct or significant exposure to fossil fuels, or engaged in activities deemed inconsistent with responsible investment considerations.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

• 5-Year Return (p.a.): 19.11%

• 3-Year Return (p.a.): 16.05%

• 1-Year Return (p.a.): 35.68%

• Management Expense Ratio (p.a.): 0.48%

• Net Assets: $3,243.5 million

• VanEck Morningstar Wide Moat ETF (ASX: MOAT)

  • 5-Year Return (p.a.): 16.46%

  • 3-Year Return (p.a.): 17.83%

  • 1-Year Return (p.a.): 30.08%

  • Management Expense Ratio (p.a.): 0.49%

  • Net Assets: $616.0 million

• BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

  • 5-Year Return (p.a.): 16.17%

  • 3-Year Return (p.a.): 12.97%

  • 1-Year Return (p.a.): 23.76%

  • Management Expense Ratio (p.a.): 0.59%

  • Net Assets: $2,579.8 million

• VanEck MSCI International Quality ETF (ASX: QUAL)

  • 5-Year Return (p.a.): 14.79%

  • 3-Year Return (p.a.): 13.80%

  • 1-Year Return (p.a.): 27.80%

  • Management Expense Ratio (p.a.): 0.40%

  • Net Assets: $3,819.1 million

• BetaShares Resources Sector ETF (ASX: QRE)

  • 5-Year Return (p.a.): 14.74%

  • 3-Year Return (p.a.): 21.81%

  • 1-Year Return (p.a.): 27.92%

  • Management Expense Ratio (p.a.): 0.34%

  • Net Assets: $173.3 million

The Best ETFs Over Three Years (FY21 to FY23)

With interest in battery minerals picking up dramatically over recent years as governments around the world step up their decarbonisation efforts, the Global X Battery Tech & Lithium ETF (ASX: ACDC) has outperformed all other ASX-listed ETFs since the beginning of FY21.

ACDC invests in companies throughout the lithium cycle, including mining, refinement, and battery production, cutting across the traditional sector and geographic definitions. It was formed in August 2018, but over the last three years it has delivered investors 29.81% per annum.

This next name may raise some eyebrows with its one-year return at -32.45%, and a five-year return in negative territory, but the BetaShares Crude Oil Index ETF (Currency-Hedged) has yielded returns of 26.25% p.a. over the last three years. 

The significant performance of OOO between FY21 and FY23 is attributable to the fact that crude oil prices hit a 13-year high in early 2022 in response to the war in Ukraine. This ETF provides exposure to the price of West Texas Intermediate (WTI) crude oil futures, hedged for currency exposure.

Meanwhile, the BetaShares Geared Australian Equity Fund (ASX: GEAR) finds itself in third spot for the top performers over the last three years. It has delivered an annualised return of 24.95% over that time. GEAR uses leverage to track the Australian share market, which means that gains are magnified when the ASX rises on a given day, and losses are magnified when the ASX falls.

Global X Battery Tech & Lithium ETF (ASX: ACDC)

• 3-Year Return (p.a.): 29.81%

• 5-Year Return (p.a.): N/A

• 1-Year Return (p.a.): 41.32%

• Management Expense Ratio (p.a.): 0.69%

• Net Assets: $628.1 million

• BetaShares Crude Oil Index ETF-Currency Hedged (ASX: OOO)

  • 3-Year Return (p.a.): 26.25%

  • 5-Year Return (p.a.): -15.52%

  • 1-Year Return (p.a.): -32.45%

  • Management Expense Ratio (p.a.): 1.29%

  • Net Assets: $163.4 million

• BetaShares Geared Australian Equity Fund (ASX: GEAR)

  • 3-Year Return (p.a.): 24.95%

  • 5-Year Return (p.a.): 10.66%

  • 1-Year Return (p.a.): 38.62%

  • Management Expense Ratio (p.a.): 0.80%

  • Net Assets: $410.0 million

• Global X FANG+ ETF (ASX: FANG)

  • 3-Year Return (p.a.): 24.39%

  • 5-Year Return (p.a.): N/A

  • 1-Year Return (p.a.): 58.48%

  • Management Expense Ratio (p.a.): 0.35%

  • Net Assets: $311.4 million

• BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL)

  • 3-Year Return (p.a.): 22.47%

  • 5-Year Return (p.a.): 0.80%

  • 1-Year Return (p.a.): 7.56%

  • Management Expense Ratio (p.a.): 0.57%

  • Net Assets: $187.2 million

The Best ETFs Over One Year (FY23)

It’s no surprise that tech ETFs occupy the top positions among the best performers over the last year, with investors rotating back into the sector after a sharp sell-off throughout 2022, and key investing themes like artificial intelligence (AI) stealing the limelight. 

The Global X FANG+ ETF (ASX: FANG) returned 58.48% in FY23, the most of any ASX-listed ETF. FANG offers access to disruptive macro-trends arising from next-gen technology developments, as well as changing demographics and consumer preferences. It includes household names like Apple, Microsoft, and Tesla, plus emerging tech names.

Not far behind, the Global X Semiconductor ETF (ASX: SEMI) returned 51.75% in the 12 months ending June 30, 2023. This ETF seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors, including the development and manufacturing of semiconductors. The AI frenzy of 2023 has underpinned the fund’s returns.

And finally, the Global X Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS) returned almost 50% over the last 12 months, with the tech-oriented fund riding the coattails of a broad-based Nasdaq rally. LNAS is another example of an actively-managed fund that uses leverage to increase exposure to the index it tracks. It primarily invests in a portfolio of long E-mini Nasdaq-100 Futures contracts.

Global X FANG+ ETF (ASX: FANG)

• 1-Year Return (p.a.): 58.48%

• 5-Year Return (p.a.): N/A

• 3-Year Return (p.a.): 24.39%

• Management Expense Ratio (p.a.): 0.35%

• Net Assets: $311.4 million

• Global X Semiconductor ETF (ASX: SEMI)

  • 1-Year Return (p.a.): 51.75%

  • 5-Year Return (p.a.): N/A

  • 3-Year Return (p.a.): N/A

  • Management Expense Ratio (p.a.): 0.57%

  • Net Assets: $111.1 million

• Global X Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS)

  • 1-Year Return (p.a.): 49.73%

  • 5-Year Return (p.a.): N/A

  • 3-Year Return (p.a.): 10.02%

  • Management Expense Ratio (p.a.): 1.00%

  • Net Assets: $56.1 million

• BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

  • 1-Year Return (p.a.): 45.53%

  • 5-Year Return (p.a.): N/A

  • 3-Year Return (p.a.): 7.90%

  • Management Expense Ratio (p.a.): 0.57%

  • Net Assets: $202.2 million

• Global X Battery Tech & Lithium ETF (ASX: ACDC)

  • 1-Year Return (p.a.): 41.32%

  • 5-Year Return (p.a.): N/A

  • 3-Year Return (p.a.): 29.81%

  • Management Expense Ratio (p.a.): 0.69%

  • Net Assets: $628.1 million