There are a lot of exchange-traded funds (ETFs) for investors to choose from on the Australian share market.
Two that could be among the best to buy for 2025 are listed below. Here's what analysts are saying about them right now:
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Betashares Australian Quality ETF (ASX: AQLT)
If you want to invest in the best shares that are listed on the Australian share market in 2025, then the Betashares Australian Quality ETF could be one way to do it.
This ASX ETF is Australia's only passive quality Australian equities fund, which maintains exposure to the largest Australian companies but weights them by their quality attributes rather than size.
Betashares notes that this results in a more balanced portfolio profile with an emphasis on quality. The fund manager recently tipped this ETF as a buy and a potential way to outperform the market. It said:
Quality companies are defined by their high return on invested equity, low levels of leverage and earning stability. Historically, companies with these attributes have outperformed broader benchmarks while displaying defensive properties. Taking a quality investment approach in Australia could therefore improve profitability and solve for our market's relatively low returns.
Its largest holdings include banking giant Commonwealth Bank of Australia (ASX: CBA) and health imaging technology company Pro Medicus Limited (ASX: PME).
Firetrail Australian Small Companies Fund Active ETF (ASX: FSML)
Another ASX ETF that could be a top buy for investors in 2025 is the Firetrail Australian Small Companies Fund Active ETF.
It provides investors with easy access to the small end of the Australian share market.
Analysts at Morgans think it could be a top option for investors next year. The broker recently named it as one to buy for its clients. It said:
FSML provides investors with a simple, accessible, liquid and transparent means of gaining access to a higher performance, diversified small cap manager – a sector of the market we at Morgans are particularly bullish on.
Performance-wise, the fund has consistently and handsomely outperformed its benchmark, the S&P/ASX Small Ordinaries Accumulation Index. This impressive track record is further supported by the fund's strong risk management practices and the team's disciplined approach to portfolio construction, making it a solid option for investors looking to diversify their portfolios beyond the mostly fully valued ASX large caps.
Among its ~40 holdings are shares such as Aspen Group Ltd (ASX: APZ) and Genesis Minerals Ltd (ASX: GMD).
