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 Exchange-Traded Funds (ETFs)

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Exchange-Traded Funds (ETFs)

VIHY: Is Vanguard's new ASX dividend ETF a buy for income?

This latest offering from Vanguard is an interesting one.

Read more »

A senior investor wearing glasses sits at his desk and works on his ASX shares portfolio on his laptop.
Exchange-Traded Funds (ETFs)

VAS vs. VHY: Which is the better ASX ETF for retirement?

VAS tracks the ASX 300 while VHY invests in stocks with higher forecast dividend yields.

Read more »

Group of people cheer around tablets in office
Exchange-Traded Funds (ETFs)

Where to invest $50,000 in ASX ETFs this month

These funds are highly rated for a reason. Here's what you need to know.

Read more »

ETF spelt out with a rising green arrow.
Exchange-Traded Funds (ETFs)

3 Betashares ETFs I'd buy with $10,000

These funds could give investors access to global innovation, emerging economic scale, and local technology upside.

Read more »

ETF written on wooden blocks with a magnifying glass.
Exchange-Traded Funds (ETFs)

3 of the best ASX ETFs to own right now

These funds are enjoying profitable tailwinds right now.

Read more »

Sport fans cheering at a game in a stadium.
Exchange-Traded Funds (ETFs)

ASX ETFs are booming. Should you join in?

Australia's ETF boom is accelerating, but investors should choose carefully.

Read more »

A technical manufacturer checks his work in a high-tech lab with precision equipment in the background.
Exchange-Traded Funds (ETFs)

Betashares Nasdaq 100 ETF: What stocks are actually in NDQ?

This ETF is packed with tech stars.

Read more »

A smiling businessman sits at a desk with bags of money, indicating a share price rise after funding has been approved
Exchange-Traded Funds (ETFs)

Why I think these Vanguard ETFs are strong buys

From Asian growth to technological change, these funds offer access to areas with long-term potential.

Read more »