An increasing number of investors are buying ASX exchange-traded funds (ETFs), with close to $275 billion now invested.
Today, 425 ETFs are trading on the ASX and CBOE exchanges, according to the latest monthly ETF report from BetaShares.
Australian investors love ETFs for their ease and instant diversification.
Not to mention the single brokerage fee it takes to buy one big basket of ASX (or international) shares in just one transaction.
Here, we review newly published ASX data showing which ETFs holding ASX shares produced the best returns for investors in FY25.
Best 6 ASX ETFs for total returns in FY25
According to the data, here are the top six ETFs:
SPDR S&P/ASX 200 Financials ex A-REIT Fund (ASX: OZF)
The OZF ETF delivered a total one-year return of 30.76%. The historical distribution yield is 3.8%.
Its success in FY25 represents the ASX 200 financial sector's status as the No. 1 market sector of the year.
This ETF has a management expense ratio (MER) of 0.34%.
The SPDR S&P/ASX 200 Financials ex A-REIT Fund closed FY25 at $30.52 per unit.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
The ATEC ETF delivered a total annual return of 30.44%. The historical distribution yield is 2.12%.
This ETF's second-place ranking is befitting, given that technology was the No. 2 market sector of FY25.
The ATEC ETF seeks to track the performance of the S&P/ASX All Technology Index (ASX: XTX) before fees.
In terms of capital growth, ASX tech shares outperformed US tech stocks by 2:1 in FY25.
This exchange-traded fund has a MER of 0.48%.
The BetaShares S&P/ASX Australian Technology ETF closed at $31.65 per unit on 30 June.
BetaShares Financials Sector ETF (ASX: QFN)
The QFN ETF delivered a one-year return of 30.17%. The historical distribution yield is 2.75%.
This ETF has a MER of 0.34%.
The BetaShares Financials Sector ETF ended the financial year at $18.12 per unit.
VanEck Australian Banks ETF (ASX: MVB)
The MVB ETF delivered a total annual return of 24.86%. The historical distribution yield is 4.13%.
This ETF has a MER of 0.28%.
The VanEck Australian Banks ETF closed at $42.86 per unit on 30 June.
Betashares Geared Australian Equities Complex ETF (ASX: GEAR)
The GEAR ETF delivered a total one-year return of 24.72%. The historical distribution yield is 1.45%.
This ETF has a MER of 0.8%.
The BetaShares Australian Quality ETF ended the financial year at $34.10 per unit.
VanEck Australian Property ETF (ASX: MVA)
The MVA ETF delivered a total annual return of 22.92%. The historical distribution yield is 4%.
Just one bank dominated the news for share price growth last year: Commonwealth Bank of Australia (ASX: CBA) shares (up 45%).
This ETF has a MER of 0.35%.
VanEck Australian Property ETF closed at $24.75 per unit on 30 June.
