Could these ASX ETFs be set for a rebound in 2026?

Look out for these funds to rebound next year.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • As 2025 ends, investors might find rebound potential in underperforming sectors through ASX ETFs, such as technology, property securities, and US equity indexes.
  • The BetaShares S&P/ASX 200 Financials Sector ETF (ASX: QFN) is down 12.6% in 2025 but could rebound with its tech-heavy portfolio including WiseTech Global and Xero, as these companies are expected to recover in 2026.
  • Vanguard Australian Property Securities Index ETF (ASX: VAP) and BetaShares FTSE RAFI U.S. 1000 ETF (ASX: QUS) have lagged, but have performed well historically.

As the year comes to a close, it can be a great time to reflect on portfolio performance. 

It's always fun to focus on the winners. However looking at traditionally strong sectors that underperformed this year can help reveal future opportunities. 

One way to target these sectors is by looking at ASX ETFs that track these indexes or themes. 

Here are three ASX ETFs that have historically performed well, however underperformed this year. Could they bounce back in 2026?

A dad holds his son up high so he can shoot the basketball into the ring.

Image source: Getty Images

BetaShares S&P/ASX 200 Financials Sector ETF (ASX: QFN)

This ASX ETF aims to track the performance of the S&P/ASX All Technology Index (before fees and expenses). 

The Index provides exposure to leading ASX-listed companies in a range of tech-related market segments such as information technology, consumer electronics, online retail and medical technology.

The fund has returned almost 14% per annum (after fees) since launching in 2020. 

Since its inception, it is up more than 80%. 

However in 2025 it is down 12.6%. 

It's no surprise this fund has struggled, as its largest exposure is to WiseTech Global Ltd (ASX: WTC), Computershare Ltd (ASX: CPU), and Xero Ltd (ASX: XRO). 

However these technology companies have all been tipped to rebound next year, making this ASX ETF a tempting buy-low option. 

Vanguard Australian Property Securities Index ETF (ASX: VAP)

This fund seeks to track the return of the S&P/ASX 300 A-REIT Index. 

This fund offers a diversified blend of Australian real estate investment trusts (A-REITs) with residential, office, retail, and industrial assets.

It is made up of 31 holdings, with its largest allocation being to Goodman Group (ASX: GMG) which makes up roughly 33% of the fund. 

In 2025 the fund has risen by a modest 2.2%. 

It has dropped almost 8% since late October. 

However since its inception in 2010, it has returned approximately 10% per annum.

BetaShares FTSE RAFI U.S. 1000 ETF (ASX: QUS)

This fund provides exposure to 500 leading listed US companies, with each holding in the index weighted equally. 

This ASX ETF rose just 1.9% in 2025 despite the S&P 500 Index (SP: .INX) rising almost 17% in the same span. 

It appears that this fund's equal weight method worked against it this year. 

However, according to Betashares, it has generated annualised returns of 13.29% over the past 5 years.

Therefore, it could be another candidate to rebound next year. 

Motley Fool contributor Aaron Bell has positions in Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

Two people work with a digital map of the world, planning their logistics on a global scale.
ETFs

3 ASX ETFs that could help investors tap into global growth

These funds provide investors with easy access to some of the best stocks in the world.

Read more »

Excited couple celebrating success while looking at smartphone.
Dividend Investing

Here's a 9% ASX dividend stock to consider for a monthly passive income

This ASX dividend stock is every investor's dream.

Read more »

ETFs

Investors who looked offshore for tech exposure are being handsomely rewarded by these ASX ETFs

Two ASX ETFs have delivered extraordinary returns for investors who backed global tech and robotics. Here is why the story…

Read more »

ETF in gold hovering on a laptop.
ETFs

The top 3 Betashares ASX ETFs over the past year

These funds have raced ahead of the market.

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
ETFs

5 excellent ASX ETFs to buy and hold for 25 years

If you want to build wealth over the next couple of decades, these funds could be worth a look.

Read more »

ETF written on wooden blocks with a magnifying glass.
ETFs

3 of the best performing Vanguard ASX ETFs over the last year

Some of Vanguard's most popular funds are performing well.

Read more »

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
ETFs

Which ASX ETFs could be buys for passive income?

Looking for an easy way to generate passive income? Here's how you could do it with ETFs.

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
ETFs

A new monthly ASX dividend ETF just hit the ASX

Another monthly dividend payer has joined the ASX.

Read more »