ASX exchange-traded funds (ETFs) have delivered some impressive gains in 2024, with standout performances across Bitcoin, precious metals, and the tech sector.
These ETFs have outperformed the broader market this year, and their gains reveal some interesting insights into investor preferences right now.
Here's a closer look at the top-performing ASX ETFs in the ten months to October 31.
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Bitcoin, gold, tech lead the pack
As a reminder, ETFs offer a low-cost, transparent, and effective way to tap into global trends. Given the world we live in, these trends can shift from year to year.
According to The Australian Financial Review, the Global X 21Shares Bitcoin ETF (CXA: EBTC) was the top-performing fund until the end of October, having climbed 72% by then.
Renewed interest in Bitcoin has seen the cryptocurrency bounce back in a big way this year, pulling this ETF to the top of the leaderboard.
At the time of writing, it is up 162% this year to date, slightly ahead of the Bitcoin price.
But the 21 Shares Bitcoin ETF trades on the Cboe Australia, according to The Motley Fool's Mitchell Lawler.
On the ASX, precious metals were spearing through the pack.
The Global X Physical Silver ETF (ASX: ETPMAG) had climbed 46.5% by October's end. This was driven by a sharp gain in silver early in the year, running from lows of US$21 per ounce in January to highs of US$34.74 per ounce in October.
Meanwhile, the Global X Physical Gold ETF (ASX: GOLD) was up nearly 38%. According to the World Gold Council, gold has been one of the best-performing asset classes this year and is realising one of its best years on record.
The ASX ETF set a new all-time high of $39.28 per share last week, according to The Motley Fool's Sebastian Bowen.
Finally, tech-focused funds saw strong gains due to tailwinds from artificial intelligence (AI) and US interest rate cuts.
The Global X FANG+ ETF (ASX: FANG), which tracks a basket of US-based global tech heavyweights, had risen nearly 39% by October.
It is now up nearly 60% at the time of publication, outpacing the S&P/ASX All Technology Index (ASX: XTX)'s 43% return.
What's the outlook for ASX ETFs in 2025?
Looking ahead, the question is where are the opportunities in ASX ETFs to invest in? There's also the question of investment flows.
At the same time, ETFs have become a more popular choice for investor portfolios than two years ago.
According to the State Street 2024 ETF Impact Survey, ETFs are "more popular among investors" in 2024 than in 2022.
The Australian data is interesting. Back in 2022, only 27% of Aussie respondents surveyed said they used ETFs in their portfolios
By April 2024, this had risen to 45% of those surveyed.
The survey findings also showed that millennials are the most likely to have ASX ETFs in their portfolios.
Foolish takeaway
These ASX ETFs have outperformed in 2024 and were the top performers up until October 31. Since then, they have held on to their gains.
What's interesting are the trends in precious metals and cryptocurrency this year. But that's not surprising, given the price action of these assets in 2024. On the other hand, tech shares have historically provided strong returns for investors. Will these trends continue in 2025? Time will tell.
