Aussie Investors Flock to ASX ETFs: Top 10 Most Traded Funds of FY25 Revealed

The Australian ETF industry ended FY25 at a record high of $280.5 billion in total assets under management. Stake data shows the most traded ASX ETFs of FY25, with three of the top four having international exposure. The iShares S&P 500 ETF, Betashares Nasdaq 100 ETF, and Vanguard MSCI Index International Shares ETF topped the list. The motivation behind these ETFs is demonstrated by a buy/sell ratio, with every ETF bar one within the top 10 having a buy ratio higher than 80%, indicating long-term investment.

Title: Australian ETF Industry Ends FY25 at Record High

The Australian ETF industry has experienced remarkable growth, with total assets under management reaching a record high of $280.5 billion at the end of FY25. This growth is attributed to the increasing popularity of exchange-traded funds (ETFs) among investors, particularly young ones, who appreciate their ease of use and diversification benefits [1].

Stake, a prominent online trading platform, has provided data highlighting the most traded ASX ETFs during FY25. The top four ETFs all have international exposure, indicating a strong interest among Australian investors in gaining access to global markets. The iShares S&P 500 ETF (ASX: IVV), Betashares Nasdaq 100 ETF (ASX: NDQ), and Vanguard MSCI Index International Shares ETF (ASX: VGS) topped the list [1].

The iShares S&P 500 ETF tracks the US S&P 500 Index, which includes the 500 largest companies by market capitalization in the US. This ETF provides investors with exposure to a broad range of US stocks, including technology, healthcare, and consumer goods sectors. The Betashares Nasdaq 100 ETF tracks the NASDAQ-100 Index, which consists of the top 100 non-financial companies listed on the NASDAQ stock exchange. The Vanguard MSCI Index International Shares ETF offers exposure to 1,325 large-cap stocks listed in developed countries, excluding Australia [1].

The buy/sell ratio for each of these top ETFs demonstrates a strong preference for long-term investments. Every ETF within the top 10, except for one, had a buy ratio higher than 80%, indicating that Australian investors view ETFs as a means to build long-term portfolios [1].

These ETFs not only provide diversification but also offer exposure to various sectors and geographies, which can help investors mitigate risks associated with market volatility. For instance, the iShares S&P 500 ETF offers exposure to a broad range of US stocks, while the Betashares Nasdaq 100 ETF focuses on the technology sector, which has been a major driver of growth in recent years.

In addition to these international ETFs, the Vanguard Australian Shares Index ETF (ASX: VAS) was also highly ranked, reflecting its popularity among Australian investors. This ETF tracks the S&P/ASX 300 Index and offers exposure to a diversified range of Australian stocks, including dividend-paying blue-chip companies [1].

The Australian ETF industry's growth and the popularity of international ETFs suggest that investors are increasingly seeking global diversification and exposure to new markets. As the industry continues to evolve, it is likely that we will see further innovation and growth in the ETF sector, providing investors with even more options to build diversified and robust portfolios.

References
[1] https://www.fool.com.au/2025/08/02/aussies-love-their-asx-etfs-here-are-the-10-most-traded-of-fy25/