Right now, these are three Australian ETFs I'd feel comfortable putting fresh money into.

VanEck Australian Quality ETF (ASX: AQLT)

The way I think about the VanEck Australian Quality ETF is simple. If I'm going to own Australian shares, I want to own the ones that actually earn their keep.

The AQLT ETF focuses on companies with high returns on equity, relatively low leverage, and more stable earnings profiles. That naturally tilts the portfolio toward businesses that generate real cash and can reinvest it sensibly. You see that reflected in the holdings, with exposure to names like BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS), the major banks, and Macquarie Group Ltd (ASX: MQG).

What I like about this ETF is that it avoids the temptation to chase whatever is fashionable. Instead, it leans into quality characteristics that tend to matter most over a full market cycle. It also ends up with different sector weightings compared to the S&P/ASX 200 Index (ASX: XJO), which can be useful if you already have exposure to traditional index funds.

For investors who want Australian equities without relying purely on market cap weighting, this feels like a sensible middle ground.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The BetaShares S&P/ASX Australian Technology ETF is at the other end of the spectrum, and that's why I like pairing it with something like the AQLT ETF.

This ETF gives you exposure to Australia's listed technology leaders, including businesses like Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), REA Group Ltd (ASX: REA), Pro Medicus Ltd (ASX: PME), and TechnologyOne Ltd (ASX: TNE).

I don't expect this part of the market to move in a straight line. Tech never does. But over time, I think Australia's best technology companies can grow earnings much faster than the broader market, even if sentiment swings around in the short term.

The ATEC ETF also plays a useful portfolio role. Many Australian investors are heavily exposed to banks and resources by default. This ETF helps balance that out with businesses tied to digital adoption, healthcare technology, and online platforms.

VanEck S&P/ASX MidCap ETF (ASX: MVE)

If large caps are the heavyweights and small caps are the lottery tickets, mid-caps often sit in a sweet spot that doesn't get enough attention.

The VanEck S&P/ASX MidCap ETF tracks the S&P/ASX MidCap 50 Index (ASX: XMD), giving exposure to companies that are already established but still have room to grow. These are businesses that often sit just below the top 20, with proven operations and expanding markets.

The holdings reflect that mix. You get exposure to companies like Pilbara Minerals Ltd (ASX: PLS), Orica Ltd (ASX: ORI), Charter Hall Group (ASX: CHC), REA Group, JB Hi-Fi Ltd (ASX: JBH), and SGH Ltd (ASX: SGH). It's a broad cross-section of Australian industry, spanning resources, industrials, property, retail, and technology.

What appeals to me here is optionality. Some of these stocks will eventually grow into large-cap leaders. Others may simply compound steadily without ever being headline names. Either way, mid-caps can deliver attractive long-term returns if you're patient.

Foolish Takeaway

If I were adding to an ETF portfolio today, I'd want a mix of quality, growth, and opportunity beyond the biggest names.

The AQLT ETF gives me exposure to Australia's strongest businesses. The ATEC ETF adds long-term growth through technology leaders. The MVE ETF captures the potential of mid-sized companies that are still climbing.

Together, they offer diversification by style, sector, and company size, without needing to overcomplicate things. That's usually a good place to start.

The post The top Australian ETFs I would buy this week appeared first on The Motley Fool Australia.

While blue-chip stocks can be perceived as safer, they also often lack the upside of riskier, high-potential small-caps. 

However, data from VanEck shows that mid-cap companies might offer the best of both worlds. 

The VanEck S&P/ASX MidCap ETF (ASX: MVE) is one option for investors looking for exposure to 50 mid-cap companies. 

The fund is made up of essentially the 50 Australian stocks that are ranked 51-100 by market cap (so after the largest 50).

It has outpaced the S&P/ASX 200 Index (ASX: XJO) in the last 5 years. 

Here are three reasons it could continue. 

Mid-caps outperform when the economy expands

Mid-caps are more sensitive to changes in the economy than large-caps. 

When sentiment is positive and equities are rallying, mid-caps can outperform due to the exposure to industries like industrials and information technology. 

These sectors tend to do well when the economy is expanding.  

Favourable outlook 

Data from the ASX ETF provider shows mid-caps recorded the highest net earnings beats among all market segments, reinforcing their fundamental strength. 

What does this mean?

Essentially, mid-sized Australian companies have beaten profit expectations more often than small or large companies, suggesting these mid-cap firms are financially strong and performing well fundamentally.

These companies received higher target price revisions from sell-side analysts for the next 12 months, compared to the broader S&P/ASX 200 Index. This paints a favourable earnings and performance outlook for these companies.

Strong upside

Finally, at the time of writing, mid-caps are currently trading at more reasonable levels relative to their long-term averages. 

This means they are (overall) offering more attractive valuations than large-caps and the ASX 200. 

Essentially, if the economic growth continues, these stocks can have greater upside than other ASX 200 companies. 

What are the best mid-cap stocks?

There are some clear examples of mid-cap companies outpacing the market so far this year. 

• Lynas Rare Earths Ltd (ASX: LYC) is up more than 225% so far this year. 

• Evolution Mining Ltd (ASX: EVN) has risen more than 135%. 
• Charter Hall Group (ASX: CHC) has lifted approximately 55%. 

The VanEck MVE fund has a unique portfolio focused on mid-cap companies. 

There isn't another fund tracking the exact same index. 

However, if investors are looking for similar funds, another to consider would be the BetaShares Australian Ex-20 Portfolio Diversifier ETF (ASX: EX20). 

EX20 aims to track the performance of an index (before fees and expenses) comprising the 180 largest stocks listed on the ASX, after excluding the 20 largest, based on their market capitalisation.

The post 3 reasons this mid-cap ASX ETF can keep beating the ASX 200 appeared first on The Motley Fool Australia.

In July alone, Betashares data shows Australian investors poured a record $5.28 billion into ASX ETFs.

The benefits include easy diversification achieved in a single trade, for one brokerage fee, and low ongoing management fees.

As ASX ETFs proliferate, some investors are abandoning traditional unlisted managed funds because they prefer the ease, transparency, and lower costs of ETFs.

Investment manager GQG Partners Inc (ASX: GQG) highlighted this trend in its 1H FY25 report.

GQG Partners said the rising popularity of ETFs contributed to a 28% reduction in inflows into its managed portfolios over the period.

The company is adapting, and last month it launched its first active ETF for its US Equity strategy.

It's already attracted $200 million of inflows.

Companies like GQG Partners typically deal with high-net-worth individuals (HNWIs).

HNWI refers to people who have investable assets worth US$1 million or more.

HNWIs can afford professional advice and investment portfolio management.

So, it's interesting to look at which ASX ETFs HNWIs are buying, given they have access to the best advice and data available.

Data from AUSIEX shows 2 ASX ETFs were among the top 10 shares purchased by wealthy advised clients last month.

AUSIEX is a wholesale trading platform provider.

The data captured the buy orders of HNWI advised clients with self-managed superannuation funds above $3 million.

The 2 ASX ETFs in the top 10 were VanEck S&P/ASX MidCap ETF (ASX: MVE), ranked third, and VanEck Global Defence ETF (ASX: DFND), ranked eighth. You can check out the full top 10 list here.

Let's find out more about these two ASX ETFs.

VanEck S&P/ASX MidCap ETF (ASX: MVE)

The MVE is the only ETF that tracks the S&P/ASX MidCap 50 Index.

Van Eck says mid-caps are the 'sweet spot' in the market because they represent businesses with the spirit and growth potential of small companies and the maturity of large companies.

MVE ETF's portfolio spans a range of sectors, with industrials (19.5%), financials (17.7%), and materials (15.4%) the largest allocations.

Top holdings include Technology One Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and JB Hi-Fi Ltd (ASX: JBH).

The fund has delivered an annualised return of 12.03% over the past decade to July 2025, including dividends.

It has $404.6 million in net assets, charges a management fee of 0.45% p.a., and distributes income twice yearly.

VanEck Global Defence ETF (ASX: DFND)

The DFND ETF gives investors targeted exposure to 31 leading global defence companies.

The ETF tracks the MarketVector Global Defence Industry (AUD) Index.

The DFND ETF is benefiting from the global defence investment theme.

More than half of the stocks this ETF is exposed to are in the US. The rest are in France, Italy, South Korea, and other nations.

Key holdings include AI and defence software firm Palantir Technologies Inc (NASDAQ: PLTR), US missile and aerospace giant RTX Corp (NYSE: RTX), and Italian aerospace and defence group Leonardo SpA (FRA: FMNB).

Since its inception in September 2024, DFND has returned 81% to June 2025, including dividends.

It has $197.1 million in net assets, a management fee of 0.65% p.a., and pays annual distributions.

The post Which ASX ETFs are wealthy investors buying in FY26? appeared first on The Motley Fool Australia.