In fact, the Australian ETF market grew 34.1% in 2025.

This growth was driven by over $53 billion in net inflows over the past year. This shattered the prior record of $31 billion set in 2024.

With so much money being pushed into this asset class, ETF providers are developing and offering new funds almost every month. 

Due to the steep competition, these funds often aim to target a sector that is not yet offered in an ASX ETF. 

What does this look like?

This means these thematic funds often target a specific sector, country, or utilise a unique methodology. 

It can be hard for investors to keep up not only with how many funds are now available (roughly 390), but also with how these funds are actually performing. 

Here is how four of the newest funds have performed since inception. 

Winners: Gold and AI 

Two of the biggest headlines in the last year have been the growth of AI and the rise in ASX gold shares.

ETF providers have been all over these trends with plenty of ETFs now targeting these specific markets. 

One of the most successful, relatively new ASX ETFs has been the Global X Gold Bullion (Currency Hedged) ETF (ASX: GHLD). 

It was first listed in March 2025. 

In less than 12 months on the ASX, it has risen almost 60%. 

This fund is very simple. Rather than offering a combination of gold mining companies, it seeks to provide investment results that generally correspond to the spot price of gold bullion. 

Switching focus to another sector that has drawn plenty of investor attention, the Global X AI Infrastructure ETF (ASX: AINF) has also been a winner since inception. 

It has been available since just May of last year and is already up 58% in that span. 

The fund tracks the performance of companies involved in supporting the data centre infrastructure requirements arising from artificial intelligence operations.

This includes companies involved in electric utilities and infrastructure, energy management and optimisation, data centre equipment manufacturing, and more. 

Geographic focus 

There have also been several new ASX ETFs listed recently that target a specific country or geographic region. 

One example is the Global X China Tech ETF (ASX: DRGN)

It offers access to 20 leading Chinese technology companies listed in Hong Kong and Mainland.

Since inception in May last year, it has risen 16%. 

Even newer is the Global X Japan TOPIX 100 ETF (ASX: J100), focusing on Japan's largest and most liquid companies. 

It has risen 5.4% since November 2025. 

Foolish Takeaway 

It is exciting that almost every sector, theme, and strategy has a corresponding ASX ETF. 

But it is also important for investors to weigh up whether they are investing in a short-term trend or a sector with real long-term upside. 

ASX ETFs also come with fees, which can eat into potential gains more than many investors realise, particularly if the funds require significant ongoing management. 

The post How are these newly listed ASX ETFs performing? appeared first on The Motley Fool Australia.

In its Investment and Economic Outlook report, the investment firm provided commentary on Australia, USA, Mexico, Japan, UK, Canada, Europe, and China. 

Chinese equities have been an emerging story for global investors thanks to the country's AI development and exposure.

China is a global leader in semiconductor production, but it isn't limiting its AI participation to this segment. 

Last month, I covered that Chinese companies engaged in battery manufacturing and Graphics Processing Units (GPUs) have been benefiting from the Chinese AI boom. 

However, a new report from Vanguard has provided a more modest outlook on Chinese equities moving forward. 

AI to drive near-term growth, but upside is limited

In yesterday's report from Vanguard, the ETF provider said China's AI development appears faster but less impactful than that of the US. 

According to the report, China's front-loaded strategy is driven by a strong digital ecosystem, robust energy infrastructure, greater acceptance of AI, aggressive government funding, and a vast talent pool in science, technology, engineering, and mathematics. 

Vanguard said these factors imply near-term upside risk, but it sees more limited upside potential for capital deepening and productivity gains. 

Efficient models and strong infrastructure reduce the need for heavy investment, and China's labour market is significantly less exposed to potential AI automation because jobs are far more concentrated in agriculture, manufacturing, and construction than in the US.

Commenting on this outlook, Grant Feng, Vanguard Senior Economist, said: 

Faster AI adoption in China will boost real growth in the near term, but the upside potential is limited for future capital deepening and productivity gains. Structural headwinds are strong, and AI alone won't be enough to lift the economy.

The report said Vanguard expects GDP growth to ease modestly to 4.5% in 2026, with tariff drags partly offset by a rebound in manufacturing and infrastructure investment. 

How can Aussie investors get exposure to Chinese equities?

For Aussie investors more bullish on the Chinese market, there are a few pure-play thematic ETFs to consider. 

The first is the iShares China Large-Cap AUD ETF (ASX: IZZ). 

As the name suggests, it is designed to measure the performance of 50 of the largest and most liquid Chinese companies that trade on the Hong Kong Stock Exchange.

It has risen roughly 13.8% in the last year. 

Investors more focused on Chinese tech exposure might consider the Global X China Tech ETF (ASX: DRGN). 

It offers access to 20 leading Chinese technology companies listed in Hong Kong and Mainland across 15 core sectors, including semiconductors, robotics, software, and internet platforms.

It has risen more than 20% in the last year. 

Finally, VanEck China New Economy ETF (ASX: CNEW) offers exposure to roughly 120 Chinese companies with growth prospects in sectors that make up 'the New Economy'. 

These are sectors such as technology, health care, consumer staples, and consumer discretionary.

It has risen 14% in the last 12 months. 

The post Should Aussie investors have exposure to Chinese equities in 2026? – Expert  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.

But there might be another market set to benefit long term. 

Alice Shen, Portfolio Manager at VanEck said in a recent report that Nvidia Inc (NASDAQ: NVDA) posted gravity-defying earnings in its most recent October quarter. 

This came as the AI economy increasingly looped back on itself and the major players invested in each other's technologies.

Ms Shen said giants like OpenAI and Oracle Corp (NYSE: ORCL) are locking in the chip supply needed to scale their models. This means demand for Nvidia hardware could soar even more.

How does China fit into the AI puzzle?

AI euphoria isn't limited to the US. 

The Chinese market has also been focussed on homegrown AI technology and chipmaking. 

Subsequently, valuations for pure-play AI stocks have soared.

While China is a global leader in semiconductor production, it isn't limiting its AI participation to this segment. 

Ms Shen believes China may be taking a different, more holistic approach compared to the western world.

The tremendous amounts of electricity, cooling, metal-intensive data centres, and resilient power supply required by AI have been the focus of many Chinese companies that have been specialising in these systems for decades.

For investors, this means there could be more reasonably priced opportunities across the broader supply chain that powers the physical backbone of AI: metals producers, energy storage leaders, and optical fibre manufacturers.

The AI boom isn't just digital 

When you think of AI, the first thing that comes to mind might be cloud computing, Chat AI tools, etc. 

But the truth is, the data centres fuelling these AI solutions require huge amounts of copper and aluminium in servers and heatsinks. 

Data indicates global copper demand could surge as much as 24% by 2035, with data centre expansion being one of the key drivers. 

According to VanEck, China may have an advantage is its integrated value chain across mining, refining and manufacturing.

Several Chinese copper and aluminium miners have been outperforming the CSI 300 Materials Index this year. In our view, investing in these metals may offer a more cost-effective and direct way to participate in China's AI capex cycle.

Chinese companies engaged in battery manufacturing and Graphics Processing Units (GPUs) have also been soaring this year as a result of the Chinese AI boom. 

How do investors gain exposure?

For investors here in Australia, the most important question is how to gain exposure to this market. 

There are a few ASX ETFs directly targeting Chinese technology and AI: 

• VanEck China New Economy ETF (ASX: CNEW) – Invests in 120 fundamentally sound and attractively valued companies with growth prospects in China's New Economy, targeting technology, healthcare, and consumer staples and consumer discretionary sectors.
• VanEck Ftse China A50 ETF (ASX: CETF) – Invests in a diversified portfolio comprising the 50 largest companies in the mainland (A-shares) Chinese market.
• Global X China Tech Etf (ASX: DRGN) – designed to track the performance of 20 leading technology companies listed in Mainland China and Hong Kong. The index selects across 15 innovation-linked sectors, including semiconductors, automation, industrial software, and internet platforms.

The post How to target China's AI rush through ASX investing appeared first on The Motley Fool Australia.

The new Global X China Tech Etf (ASX: DRGN) is a perfect example. 

The fund holds 20 Chinese technology companies listed in Hong Kong and Mainland China. 

If you bought this ASX ETF when it first listed in May, you would be ecstatic with the results. 

At the time of writing, the fund is up 28.31% since its initial listing. 

ETF Overview 

According to Global X, this ASX ETF is designed to track the performance of 20 leading technology companies listed in Mainland China and Hong Kong. 

The index selects across 15 innovation-linked sectors, including semiconductors, automation, industrial software, and internet platforms. 

Eligible companies are screened using a rules-based methodology. This incorporates market capitalisation, trading liquidity, one-year sales and earnings growth, and free cash flow yield. Constituents are market cap weighted with an 8% to manage concentration risk.

Global X's China Technology ETF (DRGN) captures the domestic champions that stand at the heart of China's innovation drive, offering targeted exposure to its efficiency-led, state-supported pathway.

Can US and Chinese Innovation Coexist?

The United States and China are dominating headlines again this week as escalating trade and tariff conflict reignites fears of a global economic slowdown. 

With new 100% tariffs on Chinese goods being discussed by US President Donald Trump and Beijing retaliating through export controls and port fees, markets are reacting with heightened volatility.

In a recent report, Global X reinforced that the rivalry between the US and China is often framed as a contest with a single winner. However the truth is more nuanced. 

The ETF provider said the US innovation model continues to dominate frontier breakthroughs in AI and semiconductors. This is supported by hyperscaler spending and private-sector capital.

Meanwhile, China's strategy emphasises efficiency and scale, diffusing innovation rapidly across industries even under hardware restrictions.

Exposure to both markets may provide investors with balance: frontier growth from the US alongside broader adoption from China.

Many investors will already have exposure to US markets through ASX ETFs. However the DRGN fund, may be an opportunity for Australian investors to gain exposure to these Chinese technology companies. 

This gives exposure to large Chinese companies engaged in robotics, IoT, semiconductors and AI ecosystems set to continue growing thanks to policy and innovation. 

The post This ASX ETF is already up almost 30% since opening in May appeared first on The Motley Fool Australia.