New data published by the ASX reveals the average annual total returns of all exchange-traded funds (ETFs) over the past five years.
ASX ETFs are becoming increasingly popular as a way of building a diversified investment portfolio.
Data from Selfwealth Ltd (ASX: SWF) shows younger investors have a particular preference for ASX ETFs.
Let's check out 4 ASX ETFs that have delivered average returns of more than 15% per year since 2019.
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4 ASX ETFs returning 15% or more per year
iShares S&P 500 AUD ETF (ASX: IVV)
According to ASX data, the IVV ETF has delivered an average total return of 15.07% per year since 2019.
The iShares S&P 500 ETF is an index-based ETF that tracks the performance of the 500 largest United States companies comprising the S&P 500 Index (SP: .INX).
These include the 'Magnificent Seven' stocks Meta Platforms Inc (NASDAQ: META), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), and Tesla Inc (NASDAQ: TSLA).
The IVV ETF allows you to adopt Warren Buffett's favourite strategy for amateur investors. It's also one of the 10 cheapest ASX ETFs on the market with a management expense ratio (MER) of just 0.04%.
BetaShares Global Cybersecurity ETF (ASX: HACK)
The HACK ETF has delivered an average total return of 16.03% per year since 2019.
The BetaShares Global Cybersecurity ETF provides exposure to global companies in the cybersecurity sector. It tracks the performance of the NASDAQ CTA Cybersecurity Index (before fees and expenses).
This ASX ETF's industry exposure includes 44.5% in systems software, 11.3% in internet services and infrastructure, 11.1% in communications equipment, and 9.8% in IT consulting and other services.
The country allocation includes 77.2% US, 9.8% India, 4.7% Israel, and 3.3% France.
The MER is 0.67%.
iShares Global 100 AUD ETF (ASX: IOO)
The IOO ETF has delivered an average total return of 16.59% per year since 2019.
The iShares Global 100 ETF holds shares in 102 of the largest global companies in developed and emerging markets.
The top sector allocations are 43% tech stocks and 11% healthcare shares. About 80% of the portfolio is in US stocks, followed by 4.5% in UK shares and 3.3% in Swiss shares.
The MER is 0.4%.
Betashares Nasdaq 100 ETF (ASX: NDQ)
The NDQ ETF has delivered an average total return of 20.23% per year since 2019.
The Betashares Nasdaq 100 ETF tracks the performance of the NASDAQ-100 Index (NASDAQ: NDX).
The ETF holds the top 100 non-financial companies on the tech-focused NASDAQ-100. Betashares investment strategist Tom Wickenden describes the Nasdaq 100 as the home of innovation stocks.
The sector allocation is more diverse than most investors realise. While a big chunk — 50.8% — is in the tech sector, there's also 15.7% in communications shares and 12.3% in consumer discretionary shares.
The MER is 0.48%.
