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The value of the Australian ASX exchange-traded fund (ETF) industry hit a new record high in May.
About $198.3 billion is invested in ETFs, according to the latest update from ETF provider BetaShares.
ETFs are an increasingly popular investment method, providing instant diversification in a single trade. New figures from the ASX quantify the total returns of ETFs over the past three financial years.
In this article, we reveal the top five performers for total investor returns over the period FY22 to FY24.
Top 5 ASX ETFs for total returns
This article focuses on ETFs that invest only in Australian shares. They include index-based and sector-based ETFs, as well as those operating under a specific strategy designed by their ETF provider.
We’ve included each ETF’s management expense ratio (MER), which is the fee you pay for each provider’s management of the ETF.
Fees can vary widely between providers, so this is always worth checking out in your research.
According to the data, here are the top five ETFs:
BetaShares Geared Australian Equity (Hedge Fund) ETF (ASX: GEAR)
The BetaShares Geared Australian Equity (Hedge Fund) ETF returned an average of 12.79% per annum. The historical distribution yield is 2.25%. The MER is 0.8%.
The GEAR ETF’s top three exposures are BHP Group Ltd (ASX: BHP) shares at 9.8% weighting, Commonwealth Bank of Australia Ltd (ASX: CBA) at 8.7%, and CSL Ltd (ASX: CSL) at 5.9%.
VanEck Australian Banks ETF (ASX: MVB)
The VanEck Australian Banks ETF returned an average of 12.79% per annum. The historical distribution yield is 5.46%. The MER is 0.28%.
The MVB ETF’s top three exposures are National Australia Bank Ltd (ASX: NAB) shares at 20.34% weighting, CBA shares at 20.02%, and Westpac Banking Corporation (ASX: WBC) at 19.89%.
SPDR S&P/ASX 200 Financials EX A-REIT ETF (ASX: OZF)
The SPDR S&P/ASX 200 Financials ex-REIT ETF returned an average of 11.86% per annum. The historical distribution yield is 4.6%. The MER is 0.34%.
The OZF ETF’s top three exposures are CBA shares at 29.25% weighting, NAB at 15.42%, and Westpac at 12.98%. This financials ETF excludes real estate investment trusts (REITs).
BetaShares Australian Financials Sector ETF (ASX: QFN)
The BetaShares Australian Financials Sector ETF returned an average of 11.63% per annum. The historical distribution yield is 3.1%. The MER is 0.34%.
The QFN ETF’s top three exposures are CBA shares at 29.2% weighting, NAB at 15%, and Westpac stock at 13%.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
The Vanguard Australian Shares High Yield ETF returned an average of 10.91% per annum. The historical distribution yield is 5.84%. The MER is 0.25%.
The VHY ETF’s top three exposures are CBA shares at 9.89% weighting, BHP at 8.82%, and NAB at 7.75%.