That was a 75% increase on net inflows in 2024, according to Betashares data.

There is now $331 billion invested across 423 ETFs on the market.

There was a net increase of 56 ETFs launched on the ASX last year, with the three major issuers being Vanguard, Betashares, and iShares.

Aussies have fallen in love with ASX ETFs for their simplicity and low cost.

They provide great diversification, and are an easy vehicle for investing in international shares through the ASX.

The Australian Securities Exchange has just released the full-year performance data for ASX ETFs in 2025.

Here, we look at the six ETFs holding ASX shares that delivered the best total returns (that's capital growth plus dividends) for investors.

6 top ASX ETFs for total returns in 2025

Two key themes are evident in the top six ETFs of 2025.

They are rising commodities and ASX mining shares, and turbocharged growth for small-cap companies.

The ASX 200 materials sector was the top performer of 2025 due to fast-rising mining shares buoyed by stronger commodity values.

S&P/ASX 200 Materials (ASX: XMJ) returned 36.21% in 2025 compared to 10.32% for the benchmark S&P/ASX 200 Index (ASX: XJO).

ASX small-cap shares also had a fantastic year due to interest rate cuts and staggering share price growth for junior gold miners.

The S&P/ASX Small Ords Index (ASX: XSO), which tracks companies ranked 101 to 300 by market cap, gave a total return of 24.96% last year compared to a 10.56% return for the S&P/ASX All Ords Index (ASX: XAO), which tracks the 500 largest companies on the market.

Let's take a look at those ETFs.

1. VanEck Australian Resources ETF (ASX: MVR)

The No. 1 ETF for total returns was the VanEck Australian Resources ETF.

MVR ETF delivered a total one-year return of 40.53%. The historical distribution yield is 2.57%.

The ETF closed at $45.96 per unit on Tuesday.

2. Betashares Australian Small Companies Select ETF (ASX: SMLL)

The SMLL ETF delivered a total one-year return of 36.39%. The historical distribution yield is 2.26%.

SMLL ETF closed at $4.92 per unit yesterday.

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

The OZR ETF delivered a total one-year return of 35.73%. The historical distribution yield is 2.62%.

The OZR ETF closed at $16.05 per unit yesterday.

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

The QRE ETF delivered a total one-year return of 35.42%. The historical distribution yield is 2.36%.

QRE ETF closed at $9.20 per unit yesterday.

Learn more about this ETF here.

5. Firetrail Aust Small Companies Fund — Active ETF (ASX: FSML)

This active ETF delivered a total one-year return of 35.2%. The historical distribution yield is 0.22%.

FSML ETF closed at $2.37 per unit yesterday.

6. Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

VSO ETF delivered a total one-year return of 25.11%. The historical distribution yield is 6.75%.

The VSO closed at $80.01 per unit on Tuesday.

The post 6 best-performing ASX ETFs holding Aussie shares in 2025 appeared first on The Motley Fool Australia.

Aussies love how ETFs make it so easy to invest. They pretty much remove the need for individual stock research by allowing investors to buy a basket of shares in a single trade.

But that doesn't mean every ETF is a great buying opportunity all the time.

ASX ETFs can overshoot in value, just like individual shares, when there is too much exuberance in the market. 

The indexes they follow will never perform in a consistently straight line, and the thematic ETFs, in particular, will wax and wane as macroeconomic factors and social trends change.  

Here is one ETF to buy and one to sell, according to experts. 

Firetrail Australian Small Companies Fund – Active ETF (ASX: FSML)

Andrew Wielandt of DP Wealth Advisory says this actively managed ASX ETF is a buy.

On The Bull, Wieland noted that FSML ETF has risen from $1.55 per unit on 9 April to $2.22 today. 

The ETF's key holdings include Genesis Minerals Ltd (ASX: GMD), Aspen Group Ltd (ASX: APZ), Life360 Inc (ASX: 360), NexGen Energy Ltd (ASX: NXG), and Regis Healthcare Ltd (ASX: REG).

Wielandt explains his rating: 

This active exchange traded fund focuses on smaller ASX-listed companies. It generally holds between 30 and 60 companies, aiming to outperform the ASX Small Ordinaries Accumulation Index over the medium to long term. 

The fund returned 11.03 per cent, after fees, for the month ending August 31, 2025, outperforming the ASX Small Ordinaries Accumulation Index by 2.62 per cent.

We expect FSML to continue performing well. 

VanEck Global Listed Private Credit (AUD Hedged) ETF (ASX: LEND)

On the other side of the coin, Jonathan Tacadena from MPC Markets says the LEND ETF is a sell. 

On The Bull this week, Tacadena points out that this ASX ETF has fallen from $19.60 per unit on 28 July to $17.25 today. 

The analyst says: 

LEND provides investors with exposure to a portfolio of the 25 largest listed companies involved in private credit. It aims to provide investment returns before fees and other costs which track the performance of the index with returns hedged into Australian dollars.

The total return was down 5.22 per cent for the three months ending September 30, 2025. Investors may want to consider cashing in gains as we believe better prospects exist elsewhere on the ASX at this stage of the cycle.

The post ASX ETFs: Experts reveal 1 to buy and 1 to sell appeared first on The Motley Fool Australia.