10 ASX ETFs for investors to watch

What are ETFs?

Exchange Traded Funds (ETFs) are an increasingly popular way for investors to gain exposure to a wide variety of investments at a relatively low cost.

ETFs generally hold a particular type of shares, bonds, commodities, currencies, cryptocurrencies or futures contracts and usually reflect the price movement of their holdings. This enables investors to get exposure to particular industries (such as a financial services ETF), an index (such as the ASX200 ETF), international markets (such as a Korean shares ETF), bonds (through a bond ETF), etc.

There are approximately 258 ETFs trading on the ASX through financial services providers such as BetaShares, BlackRock, ETFS Management (AUS) Limited, State Street Global Advisors, Australia Services Limited, VanEck Investments Limited and Vanguard Investments Australia Ltd.

Given their sector specificity, ETFs provide stock investors with a convenient means to wager on the outcomes of broader macroeconomic or geo-political developments, as opposed to honing down on particular stocks.

What are the best ETF funds to watch?

2025 could provide investors with a diverse range of macroeconomic plays, as geopolitical turmoil in the Middle East and Eastern Europe creates both uncertainty and opportunities for markets. Analysts are anticipating an end to hawkish monetary policies in many economies, following long-standing runs of rate hikes that have helped to at least quell inflation.

The following ten ETFs could be very interesting options for investors as of the month of March 2025.

1. iShares S&P 500 ETF (ASX: IVV)

2. BetaShares Cloud Computing ETF (ASX: CLDD)

3. BetaShares Diversified High Growth ETF (ASX: DHHF)

4. iShares Global Consumer Staples ETF (ASX: IXI)

5. BetaShares Australian Quality ETF (ASX: AQLT)

6. Vanguard MSCI Intl ETF (ASX: VGS)

7. iShares Core Composite Bond ETF (ASX: IAF)

8. SPDR S&P/ASX 200 ETF (ASX: STW)

9. Vanguard Global Aggregate Bd Hdg ETF (ASX: VBND)

10. VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF offers Australian investors direct access to one of the world’s most recognised equity benchmarks – the US S&P 500 Index.

It provides exposure to 500 of the largest and most influential US companies, including giants like Apple, Microsoft, and Amazon. This ETF is designed for those seeking a simple, cost-effective way to gain diversified exposure to the US economy. IVV tracks the index with impressive efficiency and benefits from BlackRock’s extensive expertise, making it a solid foundation for long-term investors looking to tap into the strength of US large-cap stocks.

IVV may appeal to investors wanting to diversify beyond Australian shores and gain access to global innovation and economic growth. The ETF’s exposure to industries such as technology, healthcare, and consumer discretionary offers the potential for both capital growth and portfolio stability.

With a low management fee and the backing of one of the world’s largest ETF providers, IVV is a popular choice for those pursuing long-term wealth accumulation through blue-chip global equities.

BetaShares Cloud Computing ETF (ASX: CLDD)

The BetaShares Cloud Computing ETF provides focused exposure to the fast-growing global cloud computing sector.

It tracks an index that includes companies at the cutting edge of cloud technology, such as Salesforce, Zoom, and CrowdStrike, allowing investors to tap into an industry that’s reshaping how businesses operate and deliver services.

CLDD is designed for investors with a strong belief in the digital economy and a higher tolerance for risk, given its targeted sector focus and growth-oriented profile.

This ETF may appeal to those seeking high-growth opportunities driven by long-term technological trends. The increasing reliance on cloud-based services across industries suggests robust demand for years to come.

However, as with many sector-specific funds, CLDD can experience heightened volatility, making it best suited to investors with a long-term horizon who are comfortable with the ups and downs of emerging technology themes.

BetaShares Diversified High Growth ETF (ASX: DHHF)

The BetaShares Diversified High Growth ETF is a multi-asset portfolio in a single trade, designed for investors aiming for long-term capital growth.

DHHF provides exposure to a diversified mix of domestic and international equities, with an allocation of approximately 90% to shares and 10% to bonds and cash. This heavy equity weighting makes it ideal for investors with a higher risk appetite, particularly those looking to build wealth over decades rather than years.

What sets DHHF apart is its simplicity and efficiency – it offers instant diversification across asset classes and geographies, all within a low-cost structure. It’s an attractive option for investors seeking a ‘set-and-forget’ core holding, including those who prefer minimal portfolio maintenance.

Its diversified nature reduces the need for constant rebalancing, making it a compelling choice for both novice investors and experienced hands looking for a streamlined high-growth solution.

iShares Global Consumer Staples ETF (ASX: IXI)

The iShares Global Consumer Staples ETF gives investors access to leading global companies in the consumer staples sector (think household names like Procter & Gamble, Nestlé, and Coca-Cola).

This sector is known for its resilience, as it focuses on products people use daily regardless of economic conditions. IXI is well-suited to investors looking for defensive exposure, offering stability during market downturns while still providing modest growth potential.

For income-focused investors, IXI can be appealing due to its exposure to companies with consistent dividends and strong balance sheets. It’s a popular choice for those seeking to balance their portfolios with lower-volatility assets, particularly in times of economic uncertainty.

IXI offers a stable footing in a core sector that underpins everyday life, providing steady returns in both bullish and bearish market cycles.

BetaShares Australian Quality ETF (ASX: AQLT)

The BetaShares Australian Quality ETF targets high-quality Australian companies that demonstrate strong profitability, solid balance sheets, and superior return on equity.

By tracking a quality-focused index, AQLT selects companies that are financially sound and less likely to experience distress during turbulent market periods. It’s an appealing option for investors seeking exposure to blue-chip Australian stocks with a focus on quality rather than just size.

AQLT may be of particular interest to investors prioritising capital preservation along with steady growth. It offers a more defensive approach to equities compared to broader market ETFs, making it suitable for those concerned about economic uncertainty.

The quality factor tilt can lead to better risk-adjusted returns over time, providing a reliable core Australian equity exposure for long-term portfolios.

Vanguard MSCI International ETF (ASX: VGS)

The Vanguard MSCI International ETF offers broad exposure to large and mid-cap stocks across major developed markets, excluding Australia.

It tracks the MSCI World ex-Australia Index, providing investors access to over 1,400 companies in regions such as the US, Europe, and Japan. With household names like Apple, Nestlé, and Toyota among its holdings, VGS allows Australian investors to diversify globally in a single, low-cost fund.

This ETF appeals to those looking to broaden their portfolio beyond domestic markets and benefit from global economic growth. Its wide diversification reduces reliance on any single country or sector, which can help smooth returns over time.

VGS is a popular choice for investors seeking international exposure without the complexity of picking individual stocks, offering a simple way to tap into global equity opportunities.

iShares Core Composite Bond ETF (ASX: IAF)

The iShares Core Composite Bond ETF is designed to provide exposure to high-quality Australian fixed income securities.

It tracks the Bloomberg AusBond Composite 0+ Yr Index, comprising government, semi-government, and corporate bonds. With a focus on investment-grade debt, IAF is a popular choice for those looking to add stability and income generation to their portfolios.

Investors may be drawn to IAF for its potential to deliver regular income while providing a defensive buffer against equity market volatility. It’s particularly suitable for conservative investors or those nearing retirement who prioritise capital preservation.

With interest rates stabilising and inflationary pressures easing, fixed income assets like IAF are gaining attention as a steady, lower-risk investment option in diversified portfolios.

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

The SPDR S&P/ASX 200 ETF is one of the most established ETFs on the Australian market, providing exposure to the top 200 companies listed on the ASX.

Covering a broad range of sectors including financials, materials, and healthcare, STW is often used as a core Australian equity holding for both institutional and retail investors. It offers a simple, cost-effective way to mirror the performance of the Australian economy.

STW appeals to investors seeking broad-based, transparent exposure to blue-chip Australian companies. Its liquidity, low management fee, and ease of access make it an ideal foundation for building a diversified portfolio.

Whether you’re a first-time investor or a seasoned professional, STW offers a reliable vehicle to participate in the growth and income potential of Australia’s largest listed companies.

Vanguard Global Aggregate Bd Hdg ETF (ASX: VBND)

The Vanguard Global Aggregate Bond Hedged ETF provides access to a vast array of high-quality global bonds, including government, corporate, and securitised debt.

Hedged to the Australian dollar, VBND minimises the impact of currency fluctuations, offering a smoother ride for income-seeking investors. Its exposure spans more than 100 countries, giving investors access to diversified fixed income markets worldwide.

VBND is an excellent choice for those looking to enhance the defensive characteristics of their portfolios. It provides reliable income potential and diversification from equities, making it appealing for conservative investors or those focused on capital preservation.

Its currency-hedged structure ensures the returns are more stable and predictable, which is particularly valuable in volatile currency environments.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML)

The VanEck MSCI International Small Companies Quality ETF offers targeted exposure to high-quality small-cap companies across developed markets, excluding Australia.

These are businesses selected for their strong balance sheets, stable earnings, and high return on equity. QSML taps into a segment of the market often overlooked (international small caps) providing opportunities for growth and diversification that differ from larger, more familiar stocks.

QSML is a compelling option for investors seeking growth potential outside the traditional large-cap space. Its focus on quality reduces some of the risk typically associated with small caps, making it suitable for those with a long-term investment horizon who are comfortable with a bit of added volatility in pursuit of higher returns.

It’s a differentiated play for those looking to complement a core portfolio with exposure to global small-cap innovation and dynamism.

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