At the time of writing, Australia's benchmark index is essentially flat year to date. 

But Aussie investors aren't sitting around waiting for the tide to turn. 

Instead, they are looking towards international equities for stronger returns. 

A recent report from Betashares identified how this is playing out in the ASX ETF market. 

According to the report, international equities broke another monthly record in August at $3.8 billion in net inflows, surpassing July's previous high of $3.56 billion. 

As a result of recent weakness in Australian equities, investors are rethinking their long-term investment plans with international equity ETFs emerging as a clear beneficiary. The category has now set a new all-time monthly record in consecutive months, while Emerging Market ETFs also saw record inflows this month.

For investors looking for global diversification with ASX ETFs, here are three that have performed well in 2026. 

Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA)

One of the best performing ASX ETFs this year from Betashares has been this Asian technology-focused fund. 

Up 32% year to date, it tracks the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan). 

The big driver has been AI and semiconductor exposure.

It essentially offers another way of playing the AI boom, through the companies manufacturing the hardware rather than primarily through the US companies selling the software/services.

Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG)

Another theme in 2026 has been emerging markets.

Emerging markets generally refer to countries or regions undergoing fast economic growth. 

Usually, countries that are undergoing growth and industrialisation.

In the case of this fund from Betashares, it offers exposure to large and mid-cap stocks across 24 emerging market countries.

Almost 80% of the fund is made up by companies from Taiwan, South Korea, China, and India. 

By sector, it has a strong weighting towards tech and financials. 

In 2026, it has risen over 14%. 

Vaneck MSCI International Value (AUD Hedged) ETF (ASX: HVLU)

Another internationally focused fund that has outperformed the Australian market this year has been this fund from VanEck. 

It provides a diversified portfolio of 250 international developed market large and mid-cap companies, with high value scores as calculated by MSCI at each rebalance, with returns hedged into Australian dollars.

The value rating is based on: price to book value, price to forward earnings, and enterprise value to cash flow from operations.

It has risen by over 22% year to date. 

The post Aussie investors are pushing their chips into international ASX ETFs – Here are three great options appeared first on The Motley Fool Australia.

Cryptocurrency ASX ETFs out of favour

In fact, the best-performing ETF from 2025, the Digital Bitcoin ETF (ASX: BTXX), was the worst performer for 2026, swinging from a 95.5% return to a 48.4% fall.

The Van Eck Bitcoin ETF (ASX: VBTC) also performed poorly, swinging from a 76.5% return in 2025 – putting it in third place overall – to a 48% fall in 2026, placing it 384^th out of 387 ETFs in 2026.

Video gaming ETFs also performed poorly in 2026 after a strong 2025, while gold ETFs, which took out five of the top 10 places in the 2025 ETF rankings, held up well.

InvestSMART said:

Gold miners were the standouts. The Betashares Global Gold Miners ETF (ASX: MNRS) returned 49.0%, while the VanEck Gold Miners ETF (ASX: GDX) gained 42.3%. They were the only ETFs from last year's top 10 to remain among the top 25 performers. The three gold bullion ETFs also remained in positive territory, returning about 15%, although all slipped outside the top 100.

AI the name of the game for ASX ETFs performance last financial year

When it comes to the 2026 results, AI and technology ETFs shone, along with critical minerals.

InvestSMART said:

Two words capture the clearest theme among many of the top performers: artificial intelligence. Much of that strength came through semiconductor exposure. Chips form the foundation of AI, and South Korea and Taiwan are among Asia's leaders in the industry. South Korea is a global leader in AI memory chips, led by Samsung and SK Hynix, while Taiwan is home to TSMC, whose second-quarter revenue rose 33.7% year on year to US$40.2 billion. This goes a long way to explaining why the top two performers – iShares MSCI South Korea ETF (ASX: IKO) and Global X Semiconductor ETF (ASX: SEMI) – notched up extraordinary annual returns of 170.8% and 160.8%, respectively.

The Global X Hydrogen ETF (ASX: HGEN) was the third-best performer, followed by Betashares Asia Technology Tigers ETF (ASX: ASIA) and Betashares Energy Transition Metals ETF (ASX: XMET).  

Rounding out the top 10 were the Global X S&P Biotech ETF (ASX: CURE), Global X Green Metal Miners ETF (ASX: GMTL), Global X Battery Tech & Lithium ETF (ASX: ACDC), iShares Asia 50 ETF (ASX: IAA), and VanEck MSCI International Value ETF (ASX: HVLU).

The most popular ETF in 2026 was the Vanguard MSCI Index International Shares ETF (ASX: VGS) with $3.8 billion in funds inflows.

The post What were the best and worst-performing ASX ETFs in 2026? appeared first on The Motley Fool Australia.

We have invested a record $372 billion in them, and last year, many delivered exceptional returns for us.

Not only were the returns good, we also enjoyed the sleep-at-night-factors that naturally come with ETFs: diversification and low costs.

One of the biggest advantages of ETFs is being able to invest in global shares via our local exchange.

That is much easier than direct trading on numerous overseas exchanges.

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

Let's take a look at three ASX ETFs that produced outstanding returns last year.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

ASIA ETF delivered a one-year return of 96%. The historical distribution yield is 1.7%.

The ETF invests in 50 of the largest technology and online retail shares in Asia (ex-Japan).

ASIA ETF was among the 6 best performing ASX ETFs holding global stocks in FY26.

Top holdings include SK HYNIX INC (15%), Samsung Electronics (10%), and Taiwan Semiconductor Manufacturing (9%).

VanEck MSCI International Value (AUD Hedged) ETF (ASX: HVLU)

ASX HVLU produced a one-year return of 67%. The historical distribution yield is 15.1%.

Hedging magnified distributions by up to 10x this season. HVLU paid $7.18 per unit on Wednesday.

This ETF is the hedged version of Vaneck MSCI International Value ETF (ASX: VLUE).

It tracks the performance of the MSCI World ex Australia Enhanced Value Top 250 Select 100% Hedged to AUD Index.

The Index measures the performance of 250 international large-cap and mid-cap companies in developed markets.

The companies are selected from the MSCI World ex Australia Index based on five value investing criteria.

The criteria includes price-to-book value, price-to-forward earnings; and enterprise value-to-cash flow from operations.

In a report, VanEck said value investing was back in vogue due to many macroeconomic headwinds today.

Value stocks are companies with good fundamentals that are considered to be trading below their intrinsic worth.

VanEck said value companies tend to cope better with high inflation and interest rates, and feel safer for investors than growth stocks during volatile periods.

Top holdings include Micron Technology Inc (4%), Verizon Communications Inc (2%), and Kioxia Holdings Corp (2%).

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

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

OZR led the 6 best performing Aussie-stock-based ETFs in FY26.

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

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

Top holdings include BHP Group Ltd (ASX: BHP) (40%) and Woodside Energy Group Ltd (ASX: WDS) (8%).

The post 3 ASX ETFs that delivered 50% to 95% returns in FY26 appeared first on The Motley Fool Australia.

A new report from VanEck has highlighted why this is likely to continue. 

Investors have been rotating away from high-priced growth stocks and focusing on tangible cash flows, robust balance sheets, and reasonable valuations – companies known as "value" companies.

The core focus of value investing centres on targeting companies perceived to be trading at bargain prices relative to their underlying business performance. 

Often, they have been unfairly punished by the market because of recent negative publicity, a one-off lousy result, or they just operate in a less popular sector of the economy.

Therefore, value shares possess more robust fundamentals than their current share prices would otherwise indicate. 

In simple terms, these shares are trading on the stock market for less than their intrinsic value.

Value has been outperforming

According to VanEck, in May, the VanEck MSCI International Value ETF (ASX: VLUE) returned +15.08%. 

This outperformed the MSCI World ex Australia Index by 10.55%. 

Over the 12 months to 31 May 2026, VLUE returned +25.26%, outperforming the benchmark by 22.88%.

The report from VanEck also reinforced why this could continue. 

Inflation pressure to persist

According to the report, value companies have historically been better placed in periods where inflation and interest rates remain elevated. 

The ongoing oil crisis, alongside other factors such as historically high global government debt, could sustain inflationary pressures.

While markets have priced in a quick resolution to the US-Iran conflict, oil prices remain up around 56% from six months ago. Elevated oil and commodity prices have typically been a leading indicator of higher inflation.

US economic growth outlook still resilient

VanEck also reinforced that despite a number of growing pains, including mounting fiscal debt, tariff disruption, a shrinking labour force following immigration policy pivot, and an ongoing war with Iran, the US economy still looks resilient with a consensus forecast real growth at ~2% for 2026 and 2027.

In combination, somewhat resilient growth with growing long-term risk and persistent inflation pressure paints a stagflationary picture over the coming months, which is a potentially favourable environment for value companies.

Value outperformed in four of the last five stagflation periods.

Valuations remain compelling

Finally, VanEck believes that even after strong recent performance, value companies are not trading at stretched levels. 

Value (based on the MSCI World ex Australia Enhanced Value Top 250 Select Index) is trading at levels close to its 10-year average. 

From a relative value perspective, valuations are also at a multi-year low relative to broader equities.

The recent US earnings season has also confirmed that value fundamentals are meaningfully improving.

The past three quarterly results have seen value companies report more net beats than the benchmark. As of 31 May 2026, Q2 has been the strongest out of the past five quarters, with sell-side analysts forecasting higher year-on-year EPS growth than the broader market over the next two years.

ASX ETFs to target value

A simple way for investors to focus on value shares is with ASX ETFs.

Two options to consider include: 

• VanEck MSCI International Value ETF (ASX: VLUE) – gives investors a diversified portfolio of 250 international developed market large and mid-cap companies, with high value scores as calculated by MSCI at each rebalance
• Vaneck MSCI International Value (AUD Hedged) ETF (ASX: HVLU) – tracks the same international value strategy as VLUE but adds currency hedging back to Australian dollars

More information on the pros and cons of currency hedging can be found here.

The post 3 reasons to prioritise value investing right now: Expert  appeared first on The Motley Fool Australia.

Common themes stretch from artificial intelligence and cybersecurity to clean energy and healthcare innovation. 

The advantage of utilising ASX ETFs is the ability to target a theme without having to pick individual winners. 

By providing diversified exposure to entire industries or emerging megatrends, these funds can help investors position their portfolios for future growth while reducing the company-specific risks that come with backing a single stock.

There are several thematic ASX ETFs that hit new 52-week highs on Monday. 

Monitoring these funds can be a great way to identify emerging trends and winning themes across global markets. 

Here are three funds investors should be monitoring after hitting new record highs yesterday. 

Betashares Capital – Betashares Climate Change Innovation ETF (ASX: ERTH)

This ASX ETF rose almost 2% yesterday to hit its highest point in the last year. 

It is now up 24% in the last 12 months. 

The fund aims to track the performance of an index that comprises a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. 

This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

It could be an ideal choice for investors looking to target ESG investing, prioritising companies having a positive environmental impact. 

Vaneck Msci International Value (Aud Hedged) ETF (ASX: HVLU)

Value investing has reemerged as a successful strategy in 2026. 

Inflation pressure, a strong US economic growth outlook and compelling valuations are all pointing towards classic signs of a value market. 

This ASX ETF has been a beneficiary of these economic conditions, rising more than 22% year to date. 

The fund gives investors a diversified portfolio of 250 international developed market large- and mid-cap companies. These companies all have high value scores as calculated by MSCI at each rebalance.

The high value score is based on: 

• price to book value
• price to forward earnings
• enterprise value to cash flow from operations.

Global X Hydrogen ETF (ASX: HGEN)

This ASX ETF continued its stellar run yesterday, climbing 2% higher to take its year to date gain to over 85%. 

The fund seeks to invest in companies that stand to benefit from the advancement of the global hydrogen industry. 

This includes companies involved in hydrogen production; the integration of hydrogen into energy systems; and the development/manufacturing of hydrogen fuel cells, electrolysers, and other technologies related to the utilisation of hydrogen as an energy source.

The post 3 of the hottest thematic ASX ETFs for investors to target this week  appeared first on The Motley Fool Australia.

Some common strategies include: 

• Growth investing: focuses on buying stocks of companies expected to grow earnings or revenue faster than the overall market
• Dividend investing: focuses on buying stocks that pay regular cash dividends, providing a steady income stream along with potential capital appreciation
• ETF investing: focuses on exchange-traded funds (ETFs), which are baskets of securities traded on exchanges that offer diversification and typically track an index

While these strategies are all viable, a new report from VanEck has shed light on the broader market conditions that are making it favourable to return to a focus on value investing. 

What is value investing?

Value investing is an investment strategy that involves buying stocks that appear to be trading below their intrinsic value, often identified through fundamental analysis and popularised by investors like Benjamin Graham.

When investors target value stocks, they look for companies perceived to be trading at bargain prices relative to their underlying business performance. 

The idea underpinning value investing is that, over time, stock prices will reflect their intrinsic value. If a share's price drops below its inherent value, it will eventually "correct" and move higher again. 

Value investors seek to profit over time by capitalising on these minor corrections in the share price.

According to VanEck, value investing was the go-to approach from the 1970s to the GFC. 

This was an era when interest rates and inflation were elevated, which saw investors gravitate towards those companies trading at lower valuation multiples and strong tangible cash flows, contributing to outperformance relative to growth companies.

The case for value investing in today's market

VanEck said there are several signs that suggest we could be in the early stages of a value market.

Firstly, inflation pressure could stay elevated. 

The ongoing oil crisis, alongside other factors such as historically high global government debt, could sustain inflationary pressure in the US, with potential global spillovers. While markets have priced in a quick resolution to the US-Iran conflict, oil prices remain up more than 56% from six months ago.

VanEck said elevated oil and commodity prices have historically been a leading indicator of higher inflation.

Additionally, the US economic growth outlook is still resilient. 

Despite a number of growing pains including mounting fiscal debt, tariff disruption, a shrinking labour force following immigration policy pivot and an ongoing war with Iran, the US economy still looks resilient with a stable growth outlook at ~2% real growth and a probability of recession of only 30%.

Finally, value companies offering compelling valuations. 

Despite strong performance for value, it is trading at levels close to its 10-year average. From a relative value perspective, valuations also hit a multi-year low relative to broader equities (proxied by MSCI World ex Australia Index), indicating ample headroom on the upside.

How to target value shares

For investors seeking exposure to value shares, one option is to use value-focused ASX ETFs. 

Two such options include: 

• VanEck MSCI International Value ETF (ASX: VLUE) – gives investors a diversified portfolio of 250 international developed market large and mid-cap companies, with high value scores
• Vaneck MSCI International Value (AUD Hedged) ETF (ASX: HVLU) – The currency-hedged version of the above fund

The post Why value investing is back: Expert appeared first on The Motley Fool Australia.

The simplest and most well-known are those that track the performance of indexes such as the S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index (SP: .INX) in the US.

Other ASX ETFs track certain sectors, such as the Australian Resources Sector ETF (ASX: QRE) and VanEck Australian Banks ETF (ASX: MVB).

Many ASX ETFs adopt certain strategies. For example, the top five Aussie shares ETFs for total returns in 2023 all had environmental, social, and corporate governance (ESG) strategies.

All of these ASX ETFs have a manager running them and their fees depend on how much work is involved.

You don't have to do much to manage an index fund, for example.

Every quarter the index is officially updated, and the ETF managers follow suit by adding or removing companies and rejigging the weightings in accordance with each company's market capitalisation.

This is all pretty simple but some ETFs charge more than others for this service.

This is why it's important to check the management expense ratio (MER) that an ETF charges before buying it.

Bear in mind that ASX ETFs with strategies will generally charge higher fees.

This is because the managers are selecting stocks on your behalf, which requires more skill and expertise.

As a general rule, the lower the management fee the better because those fees eat into your returns.

While past performance is no guarantee of future performance, it's worth looking at the history of all the ASX ETFs you're interested in and comparing the fees to determine which funds offer the best value.

We reviewed more than 300 ASX ETFs listed on CommSec to find those with the lowest MERs.

10 ASX ETFs with the lowest management fees

BetaShares Global Sustainability Leaders ETF-Currency Hedged (ASX: HETH)

The BetaShares Global Sustainability Leaders ETF-Currency Hedged invests in BetaShares Global Sustainability Leaders ETF (ASX: ETHI) with the currency exposure hedged back to the Australian dollar.

ETHI invests in companies deemed to be 'climate leaders'.

The HETH ETF share price is currently $14.17, up 22.37% over the past 12 months.

Over the past five years, it has risen 41.70%.

MER: 0.03%.

BetaShares Global Quality Leaders ETF-Currency Hedged (ASX: HQLT)

The BetaShares Global Quality Leaders ETF-Currency Hedged invests in the BetaShares Global Quality Leaders ETF (ASX: QLTY) with the currency exposure hedged back to the Australian dollar.

QLTY holds 150 global companies (ex-Australia) ranked in order of a quality score. The scores are based on a combined ranking of four key factors – return on equity (ROE), debt-to-capital, cash flow generation and earnings stability.

The HQLT ETF share price is currently $29.42, up 28.58% over the past 12 months.

Over the past five years, it has risen 49.49%.

MER: 0.03%.

VanEck MSCI International Value (AUD Hedged) ETF (ASX: HVLU)

The VanEck MSCI International Value (AUD Hedged) ETF holds 250 international developed-market large-caps and mid-caps with high scores as calculated by MSCI and returns hedged into Australian dollars.

The HVLU ETF share price is currently $27.42, up 14.49% since inception in November 2023.

MER: 0.03%.

VanEck MSCI International Small Companies Quality (AUD Hedged) ETF (ASX: QHSM)

The VanEck MSCI International Small Companies Quality (AUD Hedged) ETF invests in 150 international developed-market small-cap quality growth shares with returns hedged into Australian dollars.

The QHSM ETF share price is currently $30.08, up 26.02% since inception in November 2023.

MER: 0.03%.

Vanguard US Total Market Shares Index ETF (ASX: VTS)

The Vanguard US Total Market Shares Index ETF is an index-based ETF that tracks the performance of the whole United States stock market, incorporating more than 3,700 American US companies.

The VTS ETF share price is currently $389.92, up 27.68% over the past 12 months.

Over the past five years, it has risen 87.89%.

MER: 0.03%.

BetaShares Australia 200 ETF (ASX: A200)

The BetaShares Australia 200 ETF is an index-based ETF that tracks the performance of the ASX 200.

The A200 ETF share price is currently $130.47, up 7.30% over the past 12 months.

Over the past five years, it has risen 24.78%.

MER: 0.04%.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is an index-based ETF that tracks the performance of the 500 largest US companies comprising the S&P 500.

The IVV ETF share price is currently $52.45, up 27.71% over the past 12 months.

Over the past five years, it has risen 92.97%.

MER: 0.04%.

SPDR S&P/ASX 200 ESG (ASX: E200)

The SPDR S&P/ASX 200 ESG invests in ASX 200 shares excluding companies involved in military contracting, small arms and tobacco, oil and thermal coal above a certain threshold.

The E200 ETF share price is currently $24.82, up 4.99% over the past 12 months.

It has risen 22.33% since its inception in August 2020.

MER: 0.05%.

iShares Core S&P/ASX 200 ETF (ASX: IOZ)

The iShares Core S&P/ASX 200 ETF tracks the performance of the ASX 200 Accumulation Index.

The IOZ ETF share price is currently $31.49, up 7.07% over the past 12 months.

Over the past five years, it has risen 22.96%.

MER: 0.05%.

SPDR S&P/ASX 200 (ASX: STW)

Launched in August 2001, the SPDR S&P/ASX 200 was Australia's first listed ETF. It tracks the performance of the ASX 200 index.

The STW ETF share price is currently $70.47, up 6.50% over the past 12 months.

Over the past five years, it has risen 21.06%.

MER: 0.05%.

The post 10 ASX ETFs with the lowest management fees and why it matters appeared first on The Motley Fool Australia.