More than $300 billion is invested in ASX exchange-traded funds (ETFs) these days.
Aussies love how ETFs make it so easy to invest. They pretty much remove the need for individual stock research by allowing investors to buy a basket of shares in a single trade.
But that doesn't mean every ETF is a great buying opportunity all the time.
ASX ETFs can overshoot in value, just like individual shares, when there is too much exuberance in the market.
The indexes they follow will never perform in a consistently straight line, and the thematic ETFs, in particular, will wax and wane as macroeconomic factors and social trends change.
Here is one ETF to buy and one to sell, according to experts.
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Firetrail Australian Small Companies Fund – Active ETF (ASX: FSML)
Andrew Wielandt of DP Wealth Advisory says this actively managed ASX ETF is a buy.
On The Bull, Wieland noted that FSML ETF has risen from $1.55 per unit on 9 April to $2.22 today.
The ETF's key holdings include Genesis Minerals Ltd (ASX: GMD), Aspen Group Ltd (ASX: APZ), Life360 Inc (ASX: 360), NexGen Energy Ltd (ASX: NXG), and Regis Healthcare Ltd (ASX: REG).
Wielandt explains his rating:
This active exchange traded fund focuses on smaller ASX-listed companies. It generally holds between 30 and 60 companies, aiming to outperform the ASX Small Ordinaries Accumulation Index over the medium to long term.
The fund returned 11.03 per cent, after fees, for the month ending August 31, 2025, outperforming the ASX Small Ordinaries Accumulation Index by 2.62 per cent.
We expect FSML to continue performing well.
VanEck Global Listed Private Credit (AUD Hedged) ETF (ASX: LEND)
On the other side of the coin, Jonathan Tacadena from MPC Markets says the LEND ETF is a sell.
On The Bull this week, Tacadena points out that this ASX ETF has fallen from $19.60 per unit on 28 July to $17.25 today.
The analyst says:
LEND provides investors with exposure to a portfolio of the 25 largest listed companies involved in private credit. It aims to provide investment returns before fees and other costs which track the performance of the index with returns hedged into Australian dollars.
The total return was down 5.22 per cent for the three months ending September 30, 2025. Investors may want to consider cashing in gains as we believe better prospects exist elsewhere on the ASX at this stage of the cycle.
