Investors in Australia demonstrated strong confidence in exchange-traded funds (ETFs) throughout 2025, contributing a net total of $53 billion to the sector. This figure represents a remarkable increase of 75% compared to the previous year, according to data from Betashares. Several ETFs stood out for their impressive returns, with gains ranging from 31% to 93%.
Top Performers in the ASX ETF Market
Among the top performers, the Global X Copper Miners ETF (ASX: WIRE) achieved a staggering return of 93%, closing the year at $22.20 per share. This ETF has benefitted significantly from the escalating global demand for copper, which is crucial for electrification and renewable energy initiatives. The price of copper surged 42% over the past year, recently setting a record above US$6 per pound.
The WIRE ETF tracks the performance of the Solactive Global Copper Miners Total Return Index and boasts a diversified portfolio with 39 stocks. Investments include 37% in Canada, 11% in the United States, 10% in Australia, and smaller allocations in countries such as Japan and Sweden. Notable holdings include Sandfire Resources Ltd (ASX: SFR), which represents 3.2% of the ETF, and BHP Group Ltd (ASX: BHP), the world’s largest copper producer, accounting for 4%.
The Vaneck Global Defence ETF (ASX: DFND) also delivered strong performance, yielding 57% returns and closing the year at $36.74 per share. This ETF tracks the MarketVector Global Defence Industry (AUD) Index and includes 36 stocks. Key holdings comprise Thales SA (FRA: CSF), RTX Corp (NYSE: RTX), and Leonardo SpA (FRA: FMNB), among others.
The Plato Global Alpha Fund Complex ETF (ASX: PGA1) recorded a 31% return, also closing at $36.74. This ETF seeks to outperform the MSCI World Net Returns Unhedged Index by 4% per annum, after fees, over the medium to long term. The fund consists of over 250 stocks and has gained traction among investors, including advisory experts such as Andrew Wielandt from DP Wealth Advisory.
Wielandt, who has nearly 30 years of experience in financial services, highlighted the fund’s strategic positioning, noting its overweight allocation in financials and defence sectors while being underweight in materials and energy. Contributing to its success in the past year were major companies such as Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), and Broadcom Inc (NASDAQ: AVGO).
These ETFs exemplify the growing trend of Australian investors seeking diversified, cost-effective investment opportunities. The significant inflow of funds into the ETF market indicates a robust appetite for such financial products, reflecting confidence in their performance amid global economic challenges.
As investment strategies evolve, the performance of these ETFs offers valuable insights for potential investors considering diversification through the ASX.
