6 best ETFs holding ASX shares in FY26

Five of the top six ETFs were simple index-tracking funds.

| More on:

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

There was a key theme among the six best-performing ASX exchange-traded funds (ETFs) last financial year: mining.

Perhaps that's no surprise, given materials was the best performer of the 11 market sectors by a long shot in FY26.

The S&P/ASX 200 Materials Index (ASX: XMJ) soared 47% and produced total returns, including dividends, of 52%. 

That compares to a 3% rise for the S&P/ASX 200 Index (ASX: XJO) and a total return of 7%.

The Australian Securities Exchange has just released the full-year performance data for ASX ETFs in FY26.

Let's take a closer look at the best performers among ETFs invested solely in Australian equities.

Two playful kangaroos relaxing on a beach.

Image source: Getty Images

Top 6 ETFs holding Aussie shares

We've ranked these ETFs by total returns, which incorporates capital growth plus distributions (dividends).

1. SPDR S&P/ASX 200 Resources ETF (ASX: OZR)

OZR ETF delivered an exceptional total one-year return of 51%. The historical distribution yield is 2.4%.

The OZR ETF is $16.63, down 2.4% on Friday.

This ASX ETF seeks to mirror the performance of the S&P/ASX 200 Resources Index.

OZR invests in 59 large companies, predominantly miners, oil and gas suppliers, and other resources companies like steel makers.

The ETF currently has a 40% weighting to BHP Group Ltd (ASX: BHP) shares.

The management fee is 0.34%.

2. Betashares Australian Resources Sector ETF (ASX: QRE)

QRE ETF produced an equally impressive total one-year return of 50%. The historical distribution yield is 2.3%.

QRE ETF is $9.54, down 1.6% today.

This ASX ETF seeks to track the Solactive Australia Resources Sector Index.

It is invested in 56 resources companies and also has a 40% weighting to BHP shares.

The management fee is 0.34%.

3. VanEck Australian Resources ETF (ASX: MVR)

MVR ETF gave investors a total return of 42% in FY26. The historical distribution yield is 2.6%.

MVR ETF is $44.36, down 2.3% today.

This ASX ETF tracks the MVIS Australia Resources Index.

Index constituents are determined using a rules-based methodology focused on liquidity, with a minimum 20 holdings and maximum weighting of about 8% each. There are 35 ASX shares in the index presently.

Examples of companies included in the index are miners; mining services and equipment providers; coal, oil, gas, and uranium producers; power generation and renewable energy suppliers; and young companies with the potential to generate at least 50% of their revenue from mining once fully developed. Stocks must exceed a market capitalisation of US$150 million to be considered for the index.

Woodside Energy Group Ltd (ASX: WDS) is the largest constituent in the fund with an 8.34% weighting today.

The management fee is 0.35%.

4. iShares S&P/ASX Dividend Opp ESG Screened ETF (ASX: IHD)

This dividend-focused ETF delivered a total one-year return of 22%. The historical distribution yield is 4%.

IHD ETF is $17.06, down 0.4% today.

This ASX ETF tracks the S&P/ASX Sustainability Screened Dividend Opportunities Index.

The index is comprised of 50 high-yielding ASX shares that have been screened with environmental, social, and corporate governance (ESG) criteria to exclude selected activities.

This ASX ETF pays dividends quarterly, and the management fee is 0.23%.

5. Dimensional Australian Value Trust Active ETF (ASX: DAVA)

DAVA ETF gave investors a total return of 21% in FY26. The historical distribution yield is 6.7%.

This ASX ETF is trading at $30.86 on Friday, up 0.1%.

DAVA is an active ETF whose objective is long-term capital growth using a value investing strategy.

The management fee is 0.335%.

6. BetaShares FTSE RAFI Australia 200 ETF (ASX: QOZ)

QOZ ETF delivered a total one-year return of 20%. The historical distribution yield is 3.8%.

This ASX ETF is trading at $18.96 on Friday, down 0.4%.

QOZ tracks the FTSE RAFI Australia 200 Index, which captures 200 listed companies weighted by economic importance rather than simple market capitalisation.

Betashares says index constituent weighting is based on accounting values, and is known as "fundamental indexing".

The broker further explains:

QOZ's approach aims to deliver outperformance by selling expensive shares while buying those which are undervalued.

By removing the link between the price of a stock and its weight in the index, QOZ's strategy is less affected by fads and bubbles.

The biggest constituents today are BHP shares at 14% and Commonwealth Bank of Australia (ASX: CBA) at 7%.

The management fee is 0.4%.

Further reading

Check out the 6 best international ASX ETFs of FY26.

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP 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 young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
Exchange-Traded Funds (ETFs)

3 strong ASX ETFs to buy for FY27

These funds could be strong picks for buy and hold investors.

Read more »

Woman with long hair smiles for the camera.
Exchange-Traded Funds (ETFs)

Own VAS ETF? Here's how your investment performed in FY26

VAS is the most popular ETF on the market, with $25.37 billion in funds under management.

Read more »

A man in a suit stands before a large backdrop of a blue-lit globe, smiling and holding his hand to his chin as though thinking.
Exchange-Traded Funds (ETFs)

6 best international ASX ETFs of FY26

These ASX ETFs delivered impressive total returns of 81% to 171% last year.

Read more »

The letters ETF with a man pointing at it.
Exchange-Traded Funds (ETFs)

3 Vanguard ETFs to buy with $30,000

These ETFs offer a simple way to target major markets and long-term growth trends.

Read more »

Happy man and woman looking at the share price on a tablet.
Exchange-Traded Funds (ETFs)

Is it a good idea to invest in the NDQ ETF?

This ETF gives investors access to powerful global companies.

Read more »

Man in green face paint and yellow wig/hat cheers in front of an Australian flag.
Exchange-Traded Funds (ETFs)

Why millions of Aussies are switching to ASX ETFs

But not all ETFs are equal - choose quality over hype.

Read more »

Warren Buffett
Exchange-Traded Funds (ETFs)

I think this Buffett-inspired ASX ETF is in the buy zone right now

This Buffett-inspired ETF is looking cheap.

Read more »

Woman using a pen on a digital stock market chart in an office.
Exchange-Traded Funds (ETFs)

Getting started with ASX ETFs? These 3 might be worth a look

New data shows ETFs are more popular than ever.

Read more »