Top ASX ETFs Deliver Varied Performance Over Last Year
Australians hold more money in ASX ETFs than at any point in history. Three funds stand out for their popularity and massive holdings.
The Vanguard Australian Shares Index ETF (ASX: VAS) is the largest fund on the ASX, holding $26.19 billion as of 31 July. It tracks the S&P/ASX 300 Index across 321 holdings and charges just 0.07% per year.
VAS returned 5.79% over the last year, with 3.13% coming from distributions. Over a decade, it has compounded at 8.92% a year.
The Vanguard MSCI Index International Shares ETF (ASX: VGS) is another popular choice, managing $17.21 billion and charging 0.18% per year for exposure to 1,247 companies across developed markets.
VGS returned 10.47% over the last year, outperforming VAS by a significant margin. It also has a strong decade-long performance of 13.79% annual returns.
The Betashares Nasdaq 100 ETF (ASX: NDQ) is the most aggressive fund, with an expensive fee of 0.48% per year and a portfolio heavily weighted towards technology stocks.
NDQ returned around 12% over the last year, narrowly beating VAS but falling short of VGS's performance.
The differences in performance can be attributed to the strong growth of American technology earnings and the softer Australian dollar.