There are plenty of exchange-traded funds (ETFs) for investors to choose from on the Australian share market.
But which ones could be top picks for the year ahead?
Let's take a look at three excellent funds for investors to consider buying for 2025 and beyond. They are follows:
Betashares Australian Quality ETF (ASX: AQLT)
The first ASX ETF for investors to look at is the Betashares Australian Quality ETF. It could be a great option if you want to invest in the highest quality shares that are available on the Australian share market (never a bad idea!). Betashares recently tipped the fund as a buy and a potential way to outperform the market. It notes that "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." Among its largest holdings are 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)
If you want to invest in small caps then the Firetrail Australian Small Companies Fund Active ETF could be the way to do it. Analysts at Morgans recently named this ASX ETF as one to buy. They note that "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." Among its holdings are small caps including Aspen Group Ltd (ASX: APZ) and Genesis Minerals Ltd (ASX: GMD).
BetaShares Crypto Innovators ETF (ASX: CRYP)
Finally, if you believe that cryptocurrencies are going to flourish again in 2025 and in the years that follow, then the BetaShares Crypto Innovators ETF could be a great way to gain exposure to the industry. This ASX ETF is designed to capture the full breadth of the crypto ecosystem by investing in pure-play crypto companies (such as cryptocurrency exchanges, crypto mining companies, and mining equipment firms), diversified companies with crypto-focused business lines, and companies whose balance sheets are held at least 75% in crypto assets. Among its ~50 holdings are Coinbase (NASDAQ: COIN), Riot Platform (NASDAQ: RIOT) and MicroStrategy Inc (NASDAQ: MSTR). These companies and the others in the fund all stand to benefit greatly if the crypto industry continues to boom in 2025 under a Trump presidency.
