Bargain hunting: Which ASX ETFs have fallen the most in 2025?

ASX ETFs give investors the opportunity to gain exposure to multiple holdings in just one trade. 

This diversification can help spread risk. However, ETFs are still not immune to a market downturn, as we've experienced in 2025. 

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 4.66% since the beginning of 2025. 

The S&P 500 Index (SP: .INX) is down almost 10% and the NASDAQ-100 Index (NASDAQ: NDX) is down more than 12%. 

While it's impossible to know if we have hit the bottom of this economic downturn, it does mean quality ETFs that track these markets have also fallen significantly. 

Here at The Motley Fool we are less about trying to perfectly predict the beginning and end of a bear market and more about investing in quality holdings with a long term outlook. 

The Motley Fool's Chief Investment Officer in Australia Scott Phillips has repeatedly emphasised that over 120 years, The ASX and US market have never failed to regain, then surpass, a previous high after an economic crisis. 

So if you are looking long-term, here are three ASX ETFs that could be undervalued after a down start to the year. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ETF is one of the most traded in Australia and includes companies from around 23 different countries including the U.S, Japan, U.K, Canada, France, and Switzerland.

It actively excludes Australia, which could benefit investors with high exposure to just the Australian market. 

It currently includes more than 1,300 holdings. 

Its largest holdings are largely US focussed and include Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Microsoft (NASDAQ: MSFT). 

So far this year it has fallen 8.62%. 

However, it has provided steady returns for long term holders, up 66.23% in the last five years. 

That means hypothetically, $10,000 invested in VGS five years ago would be worth $16,623.00. 

This doesn't take into account dividends or reinvested earnings. 

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This ETF could appeal to investors focussed on impact investing which is an investment strategy on the rise in Australia. 

It involves focussing on advancing particular social or ethical causes while still being able to generate financial returns. 

According to the fund, ETHI aims to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as "Climate Leaders". 

These stocks have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

Since the start of the year, the fund is down 9.54% but remains up 42.16% over the last 5 years. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

For investors looking for exposure to US markets after a down start to the year, NDQ could be worth considering. 

The BetaShares NASDAQ 100 ETF tracks the performance of the 100 largest non-financial companies listed on the Nasdaq market. 

Like VGS, its three largest holdings are Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Microsoft (NASDAQ: MSFT). 

However, these companies represent a much larger portion of the fund. This means holders will be more exposed to rises and falls from these blue-chip stocks.

It has fallen 14.35% since the start of the year. However has brought investors strong long term growth, up 81.48% over the last 5 years.