Rising oil and gas prices rattled investors, raising concerns about the impact on the businesses they were invested in.

We are starting to see that impact, with Qantas Airways Ltd (ASX: QAN) doubling its jet fuel cost estimates for 2H FY26 today.

Fortescue Ltd (ASX: FMG) chair Dr Andrew Forrest has also revealed they paid up to double for emergency fuel supplies last month.

With all this in mind, it's interesting to look at how Aussie investors repositioned their ASX ETF portfolios as the conflict unfolded.

Aussies have $329 billion invested in ASX ETFs, and last month they ploughed an additional $5.6 billion into their favoured funds.

That makes March the third-highest month for net inflows ever. It seems the volatility caused by the war did not dampen their interest.

A new report from Betashares, which shows the top 10 ASX ETFs for inflows and outflows last month, reveals some interesting trends.

Let's take a look.

Top 10 ASX ETFs for inflows last month

Top 10 ETFs for outflows

How ASX ETFs investors repositioned last month

The VAS ETF is the most popular Australian shares ETF on the market, so it's no surprise to see it take out the top spot.

VGS is the most popular international shares ETF, so it's routine to see it close to the top as well.

The presence of IHVV in the top inflows list, and its unhedged counterpart IVV ETF in the top outflows, shows investors are mindful of currency changes over the past 12 months.

The Australian dollar has risen from just over 60 US cents 12 months ago to a three-year high of 70.8 US cents today.

As James Gruber, Equity Market Strategist at CommSec, points out:

When the Australian dollar strengthens, your international ETF returns shrink, and if the Australian dollar weakens, your returns improve.

Outflows from QAU ETF reflect profit-taking amid a 21% decline in the gold price over the first three weeks of March.

Sprott Managing Partner, Paul Wong, said investors need not be worried though.

Wong added:

Gold's March drop reflects a liquidity crunch, not a breakdown in its long-term role. 

As financial stress builds, gold is likely to reassert itself as a key monetary anchor.

Another interesting trend is the inflows into non-US international ETFs, reflecting the poorer performance of US markets this year.

In the year to date, the S&P 500 Index (SP: .INX) has lifted just 0.6% compared to a 3% bump for the ASX 200.

The post How ASX ETF investors repositioned as the Iran war shook markets appeared first on The Motley Fool Australia.

This is a significant milestone for the exchange-traded fund (ETF) provider, which launched its first two products, the BetaShares Australian Resources Sector ETF (ASX: QRE) and the BetaShares Australian Financials Sector ETF (ASX: QFN), in 2010. Today, BetaShares offers more than 100 products across Australia and New Zealand.

Along with announcing this news, BetaShares disclosed investor preferences and trends for the year to date.

Interestingly, investors have been spreading funds roughly evenly across BetaShares' top three asset classes. International equities focused funds have attracted 33.4% of new funds, while 30.7% has been invested in Australian focused ETFs and 27.2% in fixed income ETFs.

The ASX ETF provider also revealed its top 5 most popular funds.

BetaShares Australia 200 ETF (ASX: A200)

The BetaShares Australia 200 ETF is one of BetaShares' flagship funds. As of June 2024, it was the ETF providers' most popular fund, with $7.1 billion in assets under management. The A200 ETF tracks the S&P/ASX 200 Index (ASX: XJO), providing investors with exposure to the 200 largest listed companies on the ASX. It has an ultra-low management expense of 0.04%, which is especially appealing to investors. A200 is up 42.2% over the past 5 years, which (as expected) is in line with the ASX 200 Index.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The BetaShares Nasdaq 100 ETF is the ASX ETF providers' second most popular fund. It has $5.8 billion in assets under management. For a management expense of 0.48%, NDQ ETF invests in the 100 largest non-financial companies listed on the Nasdaq. The higher management fee (relative to the A200 ETF) has been well worth it for investors, with the NDQ ETF returning 112.1% over the past 5 years

BetaShares Australian High Interest Cash ETF (ASX: AAA)

The BetaShares Australian High Interest Cash ETF is the ETF provider's third most popular fund, boasting $4.4 billion in assets under management. The AAA ETF provides exposure to Australian bank deposits, with distributions that exceed the 30-day Bank Bill Swap Rate (BBSW). Its management expense is relatively low at 0.18%. As of June 2025, this ETF offered a trailing yield of 4.4%. Distributions are paid monthly. As expected for a cash investment, the AAA ETF is flat over 5 years.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

The BetaShares Global Sustainability Leaders ETF is BetaShares' fourth most popular ASX ETF. For a management expense of 0.59%, the ETHI ETF invests in a portfolio of large global stocks identified as "Climate Leaders". Such companies have been screened for significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations. Over the past 5 years, ETHI has increased by 51.3%.

BetaShares Australian Hybrids ETF (ASX: HBRD)

The BetaShares Australian Hybrids ETF is the ETF provider's fifth most popular ASX ETF. Managed by fixed income fund manager Coolabah Capital, HBRD invests in Australian Bank hybrids, hybrids from other issuers, and other fixed income securities. It has $2.4 billion assets under management. As of June 2025, the 12-month distribution yield was 6.5%, making it especially attractive for those after passive income. Distributions are paid monthly. Its management expense is 0.55%, which is relatively low for an actively managed ETF.

The post BetaShares reaches $50 billion FUM: What are their 5 most popular ASX ETFs? appeared first on The Motley Fool Australia.

Last week, I wrote about the advantages of active ASX ETFs and when they might be suitable. 

On Friday, the ASX 200 (ASX: XJO) officially entered into a bear market and took many passively managed index funds (that track the index) down with it. For example, BetaShares Australia A200 ETF (ASX: A200), which tracks the ASX 200, is down more than 10% this year. 

ASX ETFs, which track US indices, have performed even worse. Vanguard US Total Market Shares Index AUD (ASX: VTS) and Betashares Nasdaq 100 ETF (ASX: NDQ) are both down more than 15% this year. 

Investors may be looking at ways to preserve capital, and active ETFs may provide the answer. 

Given their active management style, ASX active ETFs often charge higher management fees than passive ETFs. However, according to the most recent Australian Investor Study, fees and costs associated with making an investment ranked among the top 3 considerations for selecting an investment. 

Accordingly, high management fees may deter many ASX investors. However, there are a few low-cost active ETF funds out there that may appeal. Let's explore two options.

Vanguard Global Value Equity ETF (ASX: VVLU)

Vanguard Global Value Equity Active ETF seeks to outperform the FTSE Developed All Cap Index (its benchmark) through active investment in global equity 'value' securities. It charges a management fee of 0.28%, which is particularly low for an active ETF. Investments are selected based on being undervalued, as determined by fundamental measures such as the price-to-earnings (P/E) ratio. 

As at 31 December 2024, the average P/E ratio in the portfolio was 11.24, which is significantly lower than its benchmark average of 22.05. Holding less expensive companies can provide downside protection during a market correction

As of 31 December 2024, the ETF was broadly diversified, with 870 holdings. Its top three holdings are Altria Group, AT&T, and General Motors Co. Vanguard suggests this ETF is most suited to long-term investors looking for both income and capital growth that have a higher tolerance for market volatility.

BetaShares Australian Hybrids Active ETF (ASX: HBRD)

Another ASX active ETF to consider is BetaShares Australian Hybrids Active ETF. This ETF aims to provide investors with attractive income returns from an actively managed, diversified portfolio of primarily hybrid securities. It pays income monthly at a rate expected to be significantly higher than cash and senior bonds, along with franking credits. However, this ETF comes with a slightly higher management fee than Vanguard Global Value Equity Active ETF, charging 0.55% per annum for management.

Foolish Takeaway

Passive income ETFs have been a winning strategy for many ASX investors. During a bull market, there may be very little incentive to seek out other strategies. However, during a downturn, investors may feel inclined to look around for investments that seek to preserve capital. This may be especially true for investors with shorter investment time horizons.

Over the past five years, the number of active ETFs on the ASX has risen dramatically from 37 in 2019 to 125 in 2024. Those interested in active management but conscious of high management fees might want to consider the Vanguard Global Value Equity Active ETF or the BetaShares Australian Hybrid Active ETF.

The post 2 Low Cost Active ASX ETFs to consider appeared first on The Motley Fool Australia.

And if you're not a fan of stock picking, don't worry.

That's because there are exchange traded funds (ETFs) out there that allow you to avoid picking individual stocks and focus purely on income generation.

Which ASX ETFs could be used to generate passive income?

The team at Betashares has been looking at the different options that investors have available to them and have picked out a few to consider.

The first group of ASX ETFs we will look at are equity income options. It commented:

Equity income can provide an attractive income stream from a portfolio of equities, often with distributions paid monthly or quarterly. Some strategies may offer tax advantages, such as franking credits, helping investors maximise their after-tax returns. Investors may benefit from potential appreciation in the value of the underlying stocks.

The fund manager has picked out the Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) and the Betashares Global Income Leaders ETF (ASX: INCM) as two to consider.

In respect to the former, it aims to produce attractive quarterly income and reduce the volatility of portfolio returns through a covered call strategy over a portfolio of the 20 largest blue chip shares listed on the local share market.

Whereas the Betashares Global Income Leaders ETF aims to track the performance of an index that comprises 100 high-yielding global companies (excluding Australia) that are selected for their potential to generate attractive and sustainable income.

Don't forget hybrids

Betashares also highlights that hybrids could be used to generate passive income. It said:

Hybrids generally offer a higher level of income than shares or fixed income, with a greater level of capital stability than shares. They can offer franking credits, improving after-tax returns. Betashares' hybrid funds pay distributions monthly.

One is the Active Australian Hybrids Fund (ASX: HBRD). It aims to provide investors with attractive income returns from an actively managed, diversified portfolio of primarily hybrid securities.

It pays income monthly at a rate expected to be significantly higher than cash and senior bonds, along with franking credits.

Fixed income

Another option for income investors to consider with ASX ETFs is fixed income. Betashares notes:

Fixed income typically offers a higher level of capital stability than equities. Some types of fixed income, particularly long-term government bonds, may offer a negative correlation to equities. This means that the value of the bonds increases as share prices fall, helping to smooth out volatility. It offers a consistent, and more predictable income compared to share dividends, with distributions paid monthly or quarterly.

It is tipping Betashares Australian Composite Bond ETF (ASX: OZBD) and BetaShares Australian Government Bond ETF (ASX: AGVT) as two to consider buying.

OZBD is designed to be a core portfolio allocation for fixed income, aiming to track the performance of an index that provides exposure to a diversified portfolio of high-quality Australian corporate and government bonds.

Whereas the BetaShares Australian Government Bond ETF aims to track the performance of an index providing investors with exposure to a portfolio of high-quality bonds issued by Australian federal and state governments.

The post How to generate passive income from ASX ETFs appeared first on The Motley Fool Australia.