Motley Fool Australia

Here are the 10 most popular ETFs on the ASX

trophy depicting top 10, asx 200 shares
Image source: Getty Images

Exchange-traded funds (ETFs) have grown explosively over the past decade or 2 to become a mainstream way of investing in ASX shares (as well as other assets).

In a different manner to share investing, ETF investors pay special attention to an ETF’s underlying market capitalisation. That’s because an ETF with a small volume of funds under management (FUM) generally has a higher chance of being wound-up, or else encountering other issues like slippage. An ETF’s market cap doesn’t represent the value of the underlying securities, but the value of the capital invested in it.

As such, many investors see an advantage in going with a provider that offers the largest FUM base for the chosen asset class that investor wants exposure to.

So to meet this end, here are the largest 10 ETFs trading on the ASX today, listed in descending order of market capitalisation. The data comes from Commonwealth Bank of Australia (ASX: CBA)’s CommSec brokering platform.

The 10 most popular ETFs on the ASX

ASX ETF

Market Capitalisation

Vanguard Australian Shares Index ETF (ASX: VAS)

$5.83 billion

SPDR S&P/ASX 200 ETF (ASX: STW)

$3.62 billion

iShares S&P 500 ETF (ASX: IVV)

$3.3 billion

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

$2.95 billion

Vanguard MSCI Index International Shares ETF (ASX: VGS)

$2.25 billion

BetaShares Australian High Interest Cash ETF (ASX: AAA)

$2.15 billion

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

$1.92 billion

iShares Global 100 ETF (ASX: IOO)

$1.83 billion

Vanguard Australian Property Securities Index ETF(ASX: VAP)

$1.66 billion

Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

$1.59 billion

What does this ETF table tell us?

It’s no surprise that the top 2 funds are market-wide ASX index funds. These funds are popular for passive investing into every share in either the S&P/ASX 200 Index (ASX: XJO) — or the S&P/ASX 300 Index (ASX: XKO) in VAS’s case. If an investor is looking for simple, easy exposure to Australian shares, then these funds are a cheap and easy choice.

We also have a couple of US-focused ETFs as well in IVV and VTS. The US markets are especially popular for ASX investors as well as it has always been a safe and rewarding country to invest in. And with globe-dominating companies like Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN) at the top of these funds, it’s not hard to understand why.

VGS, VEU and IOO are also popular, with these ETFs providing an avenue for access to international shares outside the US. VEU excludes US companies entirely, while IOO and VGS blends companies like Apple and Amazon with other international giants like Nestle and Unilever.

Finally, we have 2 sector-specific ETFs with AAA and VAP. AAA is a cash-only ETF that invests in cash deposits and pays out dividend distributions every month. VAP instead tracks an index of REITs (real estate investment trusts) like Scentre Group (ASX: SCG) that are traded on the ASX and are a popular choice for income investors.

Foolish takeaway

Whilst an ETF’s size isn’t normally a deciding factor for most ASX investors, it’s still useful (and interesting, in my view) to see which funds, assets, and sectors attract the most interest.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Apple and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon, Apple, and Vanguard MSCI Index International Shares ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles...

Latest posts by Sebastian Bowen (see all)