An increasing number of investors are buying ASX exchange-traded funds (ETFs), with close to $275 billion now invested.
Today, 425 ETFs are trading on the ASX and CBOE exchanges, according to the latest monthly ETF report from BetaShares.
Australian investors love ETFs for their ease and instant diversification.
Not to mention the single brokerage fee it takes to buy one big basket of ASX (or international) shares in just one transaction.
Here, we review newly published ASX data showing which ETFs holding ASX shares produced the best returns for investors in FY25.
According to the data, here are the top six ETFs:
The OZF ETF delivered a total one-year return of 30.76%. The historical distribution yield is 3.8%.
Its success in FY25 represents the ASX 200 financial sector's status as the No. 1 market sector of the year.
This ETF has a management expense ratio (MER) of 0.34%.
The SPDR S&P/ASX 200 Financials ex A-REIT Fund closed FY25 at $30.52 per unit.
The ATEC ETF delivered a total annual return of 30.44%. The historical distribution yield is 2.12%.
This ETF's second-place ranking is befitting, given that technology was the No. 2 market sector of FY25.
The ATEC ETF seeks to track the performance of the S&P/ASX All Technology Index (ASX: XTX) before fees.
In terms of capital growth, ASX tech shares outperformed US tech stocks by 2:1 in FY25.
This exchange-traded fund has a MER of 0.48%.
The BetaShares S&P/ASX Australian Technology ETF closed at $31.65 per unit on 30 June.
The QFN ETF delivered a one-year return of 30.17%. The historical distribution yield is 2.75%.
This ETF has a MER of 0.34%.
The BetaShares Financials Sector ETF ended the financial year at $18.12 per unit.
The MVB ETF delivered a total annual return of 24.86%. The historical distribution yield is 4.13%.
This ETF has a MER of 0.28%.
The VanEck Australian Banks ETF closed at $42.86 per unit on 30 June.
The GEAR ETF delivered a total one-year return of 24.72%. The historical distribution yield is 1.45%.
This ETF has a MER of 0.8%.
The BetaShares Australian Quality ETF ended the financial year at $34.10 per unit.
The MVA ETF delivered a total annual return of 22.92%. The historical distribution yield is 4%.
Just one bank dominated the news for share price growth last year: Commonwealth Bank of Australia (ASX: CBA) shares (up 45%).
This ETF has a MER of 0.35%.
VanEck Australian Property ETF closed at $24.75 per unit on 30 June.
The post Top 6 ETFs holding ASX shares that produced the best returns in FY25 appeared first on The Motley Fool Australia.
Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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