In years gone by, there were only a handful of index funds available to Australian investors, making the choice, if one had decided to go down the index fund road, easy. However, that is not really the case today. If you are searching for index funds on the ASX, there are now an overwhelming number of options one could go for. This situation, whilst good for the discerning investor, can make life tricky for those just wanting a set-and-forget strategy.

With that in mind, today, let's go through three ASX index funds that I think amount to the best choices our market has to offer a passive investor in 2026.

Three top ASX index funds for passive investing in 2026 and beyond

First up, we have the BetaShares Australia 300 ETF (ASX: A300). This ASX index fund tracks the largest 300 stocks listed on the Australian share market. That includes everything from Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS) to Coles Group Ltd (ASX: COL) and Ampol Ltd (ASX: ALD).

Like most index funds (and the other two we'll discuss in a moment), this fund is weighted by market capitalisation. That means the larger the company, the larger its slice of the index fund pie.

Full disclosure, I own an S&P/ASX 300 Index (ASX: XKO) fund, but it's not A300. This fund only launched in August of last year, and I have held the Vanguard Australian Shares Index ETF (ASX: VAS) for many years. But A300 would be my choice for new investors, simply because it charges a lower management fee of 0.04% per annum.

Our next fund worth considering is the iShares S&P 500 ETF (ASX: IVV). This fund is similar in nature to A300. However, instead of holding the ASX's 300 largest stocks, it holds the 500 largest companies in the American markets. That includes big tech titans like Nvidia, Tesla, Amazon, and Microsoft, as well as other American companies such as ExxonMobil, Coca-Cola, Walmart, and General Motors.

I think most ASX investors will benefit from expanding their portfolios beyond Australia's borders, and IVV holds many of the world's best companies. It also charges a management fee of 0.04% per annum.

Last but not least

Finally, investors may wish to consider the Vanguard MSCI Index International Shares ETF (ASX: VGS). As its name implies, this ASX index fund represents access to a number of international stock markets. That includes the US, but also Britain, Canada, Japan, Spain, Israel, Singapore, and many others. In addition to IVV's top holdings (which VGS largely shares), this fund's portfolio includes stocks such as Nestle, Toyota, AstraZeneca, and Shell.

If you wanted a US-centric index fund that also grants exposure to a diversified supplementation of advanced economies' markets, VGS is a fabulous option to consider. This ETF charges a management fee of 0.18% per annum.

The post What are the ASX's top 3 index funds for passive investing? appeared first on The Motley Fool Australia.

The ASX currently has more than 2,000 listed companies to choose from, not to mention access to international stocks as well. 

That's why a base portfolio of a few ASX ETFs can be a great starting point. 

ASX ETFs offer instant diversification in one simple trade. 

This can be especially attractive when the market is experiencing significant volatility, as has occurred over the past couple of weeks.

Current conflict in the Middle East is causing significant fluctuations day to day for many Australian and global blue-chip stocks.

With this uncertainty and volatility likely to continue in the short-term, it is important to have a portfolio spread across various sectors and countries. 

These three funds would make an ideal starting point for a new investor aiming for a broadly diversified portfolio. 

Global X Australia 300 Etf (ASX: A300)

As the name suggests, this fund offers exposure to the 300 largest Australian companies listed on the ASX.

Typically, investors track the performance of the S&P/ASX 200 Index (ASX: XJO). 

However, this fund offers exposure to a broader set of companies than the typical 200 Australian companies.

Its largest exposure is to Australia's two largest companies by market cap: 

• Commonwealth Bank of Australia (ASX: CBA)
• BHP Group Ltd (ASX: BHP). 

These two holdings represent roughly 20% of the fund. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

With Australia's market covered by the A300 fund, adding the BetaShares NASDAQ 100 ETF provides a US focus. 

This ASX ETF comprises 100 of the largest non-financial companies listed on the Nasdaq market, and includes many companies that are at the forefront of the new economy.

The NASDAQ 100 is often referred to as the "new economy." 

With its strong focus on technology, NDQ ETF provides diversified exposure to a high-growth potential sector that is under-represented in the Australian sharemarket.

It includes some of the biggest global companies like Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN). 

It has a strong track record, rising 84% over the last 5 years. 

Betashares Global Shares Ex Us Etf (ASX: EXUS)

With bases covered in Australia and the US, this ASX ETF provides a more global outlook. 

It provides exposure to 900+ large and mid-cap companies from 22 developed markets excluding the US and Australia.

Its largest exposure by country is to: 

• Japan (23.8%)
• Britain (13.2%)
• Canada (12.6%). 

With the US historically representing the majority of developed markets, adding exposure outside the US provides both geographic and sector diversification. 

Compared to US focused exposures, EXUS WTF has a higher weighting to sectors such as financials and industrials, and a lower weighting to technology.

The post 3 ASX ETFs for new investors to consider in 2026 appeared first on The Motley Fool Australia.

Building a globally diversified portfolio doesn't require dozens of holdings or a constant stream of trading decisions. This structure with 5 diversified ETFs is simple, transparent, and built for the long haul.

Global X Australia 300 ETF (ASX: A300) 

The foundation starts at home. This ASX ETF provides exposure to the 300 largest companies on the ASX. That means ownership across the full spectrum of Australia's corporate heavyweights.

It includes banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), miners such as BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), as well as to healthcare leader CSL Ltd (ASX: CSL) and retail giant Wesfarmers Ltd (ASX: WES).

A300 is broad, diversified and low cost, making it well suited to anchor roughly 30% of a portfolio in domestic equities.

iShares S&P/ASX 200 ETF (ASX: IOZ) 

This ASX ETF offers a slightly tighter focus on the 200 largest Australian companies. While there is overlap with A300, IOZ remains one of the lowest-cost ways to gain exposure to the core of the Australian market.

Together, these funds ensure investors capture dividends, franking credits and the performance of Australia's biggest listed businesses.

Betashares Global Shares ETF (ASX: BGBL) 

Global diversification is where long-term growth often accelerates. This Betashares ETF delivers exposure to around 1,500 companies across developed markets.

Investors gain access to global leaders such as Apple Inc. (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN), alongside major European and Japanese corporations.

It spreads risk across sectors including technology, healthcare, financials and consumer goods, reducing reliance on any single economy.

Betashares Global Quality Leaders ETF – Currency Hedged (ASX: HQLT) 

For a sharper tilt toward financially strong businesses, this ASX ETF narrows the field to approximately 150 high-quality global companies selected for strong profitability, stable earnings and solid balance sheets.

The currency hedging back to Australian dollars reduces exchange rate volatility, which can smooth returns over time. This ETF adds a disciplined growth overlay to the global allocation.

SPDR Bloomberg AusBond ETF (ASX: BOND)

No portfolio is complete without a defensive component. BOND ETF invests in a diversified basket of Australian government and investment-grade corporate bonds.

Bonds typically move differently to shares, helping cushion portfolios when equity markets fall. They also provide income, adding stability to overall returns.

Foolish Takeaway

An allocation could look like this: around 30% in Australian equities through A300 and IOZ, approximately 35% in global shares via BGBL and HQLT, with the remaining portion in BOND to provide defensive ballast.

The result is a diversified, low-cost portfolio spanning thousands of companies worldwide, supported by high-quality bonds.

There is no need to predict which individual stock will outperform next year. Instead, investors gain broad exposure to the engines of global growth while maintaining stability through disciplined asset allocation. It's a structure designed to endure market cycles rather than chase them.

The post 5 low-cost ASX ETFs for a global diversified portfolio appeared first on The Motley Fool Australia.

The report highlights that this investment class is becoming an increasingly attractive asset option for investors. 

Key takeaways

According to the Global X report, the Australian ETF market grew 34.1% in 2025 and is running at a five-year compound annual growth rate (CAGR) of 28.3%. 

This growth was driven by over $53 billion in net inflows over the past year, positive market movements, and unlisted funds converting into active ETFs.

Investors poured $5.3 billion in Australian ETFs in the final month of the year, capping off a record breaking 2025 with net inflows totalling $53.3 billion to close out the year, shattering the prior record of $31 billion set in 2024.

But it wasn't just the total investment that broke records. 

For the first time since 2019, 92% of Australian-listed ETFs delivered positive returns. 

These milestones highlight how ETFs have firmly established themselves as mainstream investment vehicles for Australian investors, offering transparency, liquidity and cost efficiency. 

With ETF penetration in Australia still well below international markets, we believe adoption has further room to grow as investors increasingly use ETFs as core portfolio building blocks across asset classes and investment styles.

The report also noted that most Australian ETF investors opt for unhedged currency funds for their global exposure. 

Historically, only 10-15% of global equity ETF allocations have been directed to currency-hedging strategies.

However, according to Global X, in 2025, that share rose. Roughly one in every five dollars flowing into currency-hedged exposures, reflecting a heightened focus on managing currency risk.

December at a glance

The report highlighted that December 2025 was dominated by a powerful surge across precious metals. 

This capped off a year where commodities emerged as the standout investment theme of 2025. 

Gold, silver, platinum and palladium all rallied sharply in the final month, supported by tight supply conditions, resilient central bank demand and growing expectations of easier monetary policy in 2026.

What were the most popular categories in 2025?

The report also shed light on the most heavily sought after sectors in 2025. 

Equity ETFs dominated inflows, capturing about two-thirds of total ETF flows in 2025. 

Of the $35 billion allocated to equity ETFs, $7.3 billion went into broad-based global equity ETFs, making them the most popular category as investors sought low-cost, diversified exposure.

Broad-based Australian equity ETFs ranked second, after leading flows in 2024.

Defensive assets were also significant, with $14 billion allocated to fixed income ETFs. Global diversified fixed income ETFs had a particularly strong December, boosted by a large model portfolio rotation, contributing to $2.1 billion in inflows for the year.

Liquid alternatives regained momentum, with commodity ETFs attracting over $2 billion in net inflows. Their share of total flows was the highest since 2020, reflecting renewed interest in diversification, inflation hedging, and real assets.

How to target these sectors?

For investors looking for exposure to these sectors, there are plenty of ASX ETFs to consider. 

Amongst thematic ASX ETFs, Global X identified the following as the fastest growing: 

• Global X China Tech Etf (ASX: DRGN)
• Global X Ai Infrastructure ETF (ASX: AINF)
• Global X Gold Bullion (Currency Hedged) ETF (ASX:GHLD). 

For global equities, popular ASX ETFs to consider include: 

• Vanguard MSCI Index International Shares ETF (ASX: VGS)
• iShares S&P 500 ETF (ASX: IVV)
• VanEck MSCI International Quality ETF (ASX:QUAL)

For broad-based Australian Shares: 

• Vanguard Australian Shares Index ETF (ASX: VAS)
• BetaShares Australia 200 ETF (ASX: A200)
• Global X Australia 300 Etf (ASX: A300). 

The post Why Aussies are pouring into ASX ETFs at a record pace appeared first on The Motley Fool Australia.

These include Global X Defence Tech ETF (ASX: DTEC) and Global X Semiconductor ETF (ASX: SEMI).

ASX DTEC, which returned 64% to investors last year, is benefiting from a major increase in worldwide defence spending.

This includes a commitment made last year by the 32 NATO nations to raise their spending from 2% to 5% of GDP over the next decade.

SEMI ETF, which returned 56% in 2025, is leveraging the artificial intelligence (AI) investment theme, as the world's next generation of innovative technology will require semiconductors to power it.

How much will Global X ETF investors receive?

We have summarised the dividend amounts and dividend reinvestment prices (DRPs), rounded to two decimal places.

The post Own DTEC or SEMI ETFs? Here's why it's a big day for you appeared first on The Motley Fool Australia.

These include Global X Copper Miners ETF (ASX: WIRE), which exposes investors to copper shares all over the world.

ASX WIRE has tailwinds due to a 37% lift in the copper price over the past year, as global demand increases due to the energy transition.

It also includes Global X Defence Tech ETF (ASX: DTEC), which has had a stellar run since inception in October 2024.

ASX DTEC is leveraging a massive increase in worldwide defence spending amid growing geopolitical tensions.

Global X reveals next lot of dividends for ASX ETFs

We have summarised the dividend amounts and dividend reinvestment prices (DRPs), rounded to two decimal places.

Global X will pay investors this Friday, 16 January.

The post Global X announces dividends for DTEC, WIRE and other ASX ETFs appeared first on The Motley Fool Australia.

This has been reflected in the investor activity throughout November. Data shows there has been a surge in small-cap investing amongst ETF investors. 

Outperforming the blue-chips

The Global X Market Scoop report stated that Australian equity ETFs with a size-tilt experienced a notable surge in net flows during November. This reflects growing investor interest in diversifying beyond the large-cap-dominated landscape.

According to the report, after several years in which large caps, such as banks, led market returns, attention is increasingly shifting to smaller and mid-sized companies.

These can offer potential for outsized growth and portfolio broadening. 

Global X said the trend underscores that investors may be looking to capture opportunities across the full spectrum of the Australian equity market rather than concentrating solely on the mega-cap heavyweights.

Whether investors are aiming for the top 300 Australian companies rather than just the top 200, or focusing exclusively on smaller companies, small-caps could be making a comeback.

So far in 2025, these shares have outperformed their large-cap counterparts by 14%. This marks the best relative outperformance in nearly 16 years.

Attracting investor capital 

Global X said this renewed focus has coincided with the launch of several new, more active ETFs targeting small and mid segments. 

This provides investors with targeted exposure and more flexible management strategies. 

For example, the Global X Australia 300 ETF (ASX: A300) was launched in August this year. 

As these products gain traction, small and mid-cap ETFs are beginning to attract capital, suggesting the potential for a rotation or at least a complementary role alongside traditional large-cap allocations.

In November 2025, record inflows of approximately $272 million were seen into Australian small-cap ETFs, underscoring a growing investor appetite for the segment.

How to target small-caps

There are funds that track the 300 largest companies on the ASX, like the previously mentioned Global X Australia 300 ETF or the Vanguard Australian Shares Index ETF (ASX: VAS). 

These give you more access to mid and smaller companies outside the top 200.

However, they do still include a large weighting towards blue-chip stocks. 

For a more specific focus and to avoid crossover into large-cap stocks, there are other ASX ETFs to consider: 

• Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) – Tracks roughly 180 small-cap companies
• BetaShares Australian Small Companies Select Fund (ASX: SMLL) – Invests in a portfolio typically between 50-100 small-cap stocks that are generally within the 91-350 largest by market cap

The post Why Australian small-cap shares are shining appeared first on The Motley Fool Australia.