15 Best-Performing ETFs in Australia Over the Last 10 Years

Australia’s ETF revolution continues to pick up speed – now with over $300 billion of funds under management and over 400 ASX- listed ETFs, the market is clearly shifting towards low-cost diversified investments and global equity exposure. Australian Securities Exchange

But why does this matter? Well over the past decade, the real winners in the ETF space have not been the old guard domestic share funds – it’s been the newcomers that are nimble, globally-focused, tech-driven and always on the lookout for quality investments.

One obvious example is the BetaShares Nasdaq-100 (NDQ) which has returned about 20% a year over ten years – well ahead of the broad Australian share market which has historically churned out low teens returns. (NDQs ten year returns come from the fact sheet.)

So if youre an Aussie investor looking to make some real dollars over the next decade, you need to be thinking – not just what ETF should I pick but what region, sector, currency and structural trends am I going to back?

The next section will take you through the top 15 performing ASX-ETFs over the last decade – showing you what they’ve done and how you might be able to use that to make some smart investment decisions in your portfolio.

So why did these ETFs do so well?

Tech’s long run trend

At the top of the pack were funds with big allocations to US tech and platform businesses. NDQ benefited from those massive earnings growth and multiple expansion from companies like NVIDIA, Apple and Microsoft.

Quality rules

The global quality factor (high return on equity, stable earnings etc.) – as packaged up neatly in QUAL – delivered those strong decade long returns with a relatively smooth ride compared to pure growth funds.

The US engine room

Just investing in a simple broad US fund via IVV has kept plenty of investors in the winners – the big US tech and consumer platform companies – without having to pick a sector.

Currencies do matter

Hedged pairs (IHVV, IHOO) show how much Aussie dollar moves can shave or boost long run returns. Over the past decade the unhedged ones have actually done a little better than the hedged ones – but that can change at any time.

Top 15 Best-Performing ASX ETFs (10-Year View)

Here’s a decade-long snapshot of Australia’s top-performing ETFs — ranked by consistent returns, global exposure, and sector leadership. Ideal for investors building a resilient long-term portfolio.

1. BetaShares NASDAQ-100 ETF (ASX: NDQ)

10-year return: Just under 20.5 %pa – as at Sep 30 2025

Index tracked: The NASDAQ-100 Index – which essentially tracks the top 100 non-financial US companies.

NDQ has really taken off in the past decade & it’s no surprise given the dominance of top tech players like Apple, Microsoft, Amazon, Nvidia, Meta and Tesla. The ETF’s success highlights the massive impact of innovation, digital transformation and adoption of AI on global equity markets.

For investors, NDQ offers decent liquidity, diversification within US growth sectors and a clear, transparent process. However, it does have a big chunk of its fund invested in tech and consumer discretionary sectors, which can lead to some wild swings when sentiment turns.

Investor insight: If you’re looking to use NDQ, think of it as a ‘satellite’ investment to complement a more diversified global or Australian core. It works best for long-term investors who can weather the short-term ups and downs for superior compounding.

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

10-year return: Just under 15.7 %pa

Index tracked: The S&P 500 Index – which covers US Large Caps

IVV gives Aussie investors a low-cost way to tap into the huge US economy. It captures about 80% of total US market capitalisation, and is home to well-known stocks such as Apple, Johnson & Johnson, and ExxonMobil.

Its long-term outperformance is all down to corporate innovation, strong earnings, and the global influence of US firms. With a MER of just 0.03%, costs are virtually negligible, which means more real returns for you.

Investor insight: IVV is perfect as a core global equity holding for any diversified portfolio.

3. iShares Global 100 ETF (ASX: IOO)

10-year return: Just under 15.9 %pa

Index tracked: The S&P Global 100 Index

IOO gathers up the world’s top 100 blue-chips – across more than 20 different countries, including Nestle, Shell, Samsung, Apple and Roche. These global titans are known for their strong margins and stable dividends.

Investor insight: IOO is your go-to for balancing growth and stability in a global portfolio – ideal for investors who don’t want to put all their eggs in the US tech basket.

4. VanEck MSCI International Quality ETF (ASX: QUAL)

10-year return: Just under 15.6 %pa

Index tracked: The MSCI World Ex-Australia Quality Index

QUAL screens the global market for high ROE, stable earnings and low debt – and comes up with quality stocks such as Visa, Microsoft, Nestle and L’Oreal.

Investor insight: This one stands the test of time – especially during market volatility and economic slowdowns, making it a great choice for investors who value steady compounding over rapid gains.

5. Vanguard MSCI International Shares ETF (ASX: VGS)

10-year return: Just under 13.3 %pa

Index tracked: The MSCI World Ex-Australia Index

VGS spreads your investment across 1,400 companies in the US, Europe and Japan. The ETF’s broad coverage and 0.18 % fee make it a cost-efficient core building block for your portfolio.

Investor insight: A one-ticket global solution for anyone looking to invest in a broad spread of international stocks – with minimal fees.

6. iShares S&P 500 AUD Hedged ETF (ASX: IHVV)

10-year return: Just under 13.4 %pa

Index tracked: The S&P 500 – hedged to AUD

IHVV neutralises the impact of currency fluctuations between the USD and AUD. This means your returns are less likely to be affected by big swings in the Aussie dollar.

Investor insight: Perfect for investors who want predictable returns in AUD – such as retirees who want a stable income locally.

7. iShares Global 100 AUD Hedged ETF (ASX: IHOO)

10 Year Return: About 13.4 % p.a.

Index Tracked: S & P Global 100, hedged to Australian Dollars

IHOO runs alongside IOO but takes currency volatility out of the picture. Over the past decade, it stacks up pretty well to IHVV and leaves most Aussie equity funds in the dust.

Investor Takeaway: A balanced option for those looking for global diversity and smoother, AUD-adjusted returns.

8. VanEck Morningstar Wide Moat ETF (ASX: MOAT)

10 Year Return: Around 15% p.a.* (approx.)

Index Tracked: Morningstar Wide Moat Focus Index

MOAT goes after companies with solid competitive advantages – think Microsoft, Coca Cola, Nike, and Amazon. It blends active insight with a rules-based approach to investing.

Investor Insight: This one’s for investors who like Warren Buffett-style fundamentals – buying quality businesses at reasonable prices.

9. VanEck Australian Equal Weight ETF (ASX: MVW)

10 Year Return: About 9.3 % p.a.

Index Tracked: MVIS Australia Equal Weight Index

MVW brings big and mid-cap stocks on a level playing field, cutting down concentration in banks and miners. Rebalancing twice a year gives you exposure to rising mid-caps.

Investor Takeaway: A smart move for those seeking genuine Aussie diversification benefits.

10. iShares Core S&P/ASX 200 ETF (ASX: IOZ)

10 Year Return: Around 8.3% p.a.

Index Tracked: S & P/ASX 200 Index

IOZ is a low-cost way to get in on the top 200 Aussie companies, which are heavily weighted towards financials and materials.

Investor insight: Great for domestic investors looking for franked dividends and long-term stability.

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

10 Year Return: About 8.3% p.a.

Index Tracked: S & P/ASX 200 Index

STW was one of Australia’s first ETFs and remains one of the biggest by volume. It tracks IOZ’s performance but with slightly different liquidity characteristics.

Investor Takeaway: This one’s a common choice in SMSFs for transparent, income-orientated exposure to the Aussie market.

12. Vanguard US Total Market Shares ETF (ASX: VTS)

10 Year Return: Around 15.3% p.a.

Index Tracked: CRSP US Total Market Index

VTS gets you every major listed US company – big, mid, small and micro-cap – offering the ultimate in diversification, all for 0.03% MER.

Investor insight: This one’s perfect for long-term core exposure to the US economy.

13. VanEck Australian Banks ETF (ASX: MVB)

10 Year Return: About 11% p.a.

Index Tracked: MVIS Australia Banks Index

MVB zeroes in on the big four banks plus smaller lenders. While they can be a bit cyclical, bank dividends remain attractive and fully franked.

Investor Takeaway: Suitable for income-focused investors who understand sector cyclicality.

14. VanEck Australian Resources ETF (ASX: MVR)

10 Year Return: Around 14.3% p.a.

Index Tracked: MVIS Australia Resources Index

MVR rides the resources super-cycle – BHP, Rio Tinto, Fortescue, and Woodside dominate. Returns have been driven by demand from China and India.

Investor insight: This one’s a strong satellite play for those bullish on global infrastructure and an energy transition.

15. Vanguard Australian High Dividend Yield ETF (ASX: VHY)

10 Year Return: Around 8-9% p.a.

Index Tracked: FTSE ASFA Australia High Dividend Yield Index

VHY goes after reliable dividend payers like CBA, Wesfarmers, Telstra, and Woolworths, with quarterly franked distributions.

Investor insight: Best for retirees and income-seekers who prefer steady yield to capital growth.

15 Best Performing ETFs Last 10 Years Australia – A Comparison

Key Takeaways for ETF Investors

1. Diversify across regions and factors: Growth (NDQ, IVV), Quality (QUAL), Income (VHY, MVB)
2. Watch the currency effect: Hedged ETFs (IHVV, IHOO) reduce volatility; unhedged ETFs benefit when the AUD falls
3. Keep fees low: ETFs like VTS and IVV charge under 0.05 % so you keep more of your returns
4. Think long-term: All high performers are rewarded with patience; chasing short-term trends rarely works
5. Reinvest distributions: Compounding is key to matching long-term benchmarks

Mini-profiles (what you’re really buying)

• NDQ (Nasdaq-100) — 100 non-financial US mega-caps, 50%+ IT weight. Decade of explosive growth helped by cloud, AI and ad platforms. High growth, higher drawdowns. Betashares
• IVV (S&P 500) — 500 US large caps across sectors; a set-and-forget US core holding. BlackRock
• IOO (Global 100) — 100 global giants (US-heavy). Simple way to own the world’s household names. BlackRock
• QUAL (MSCI World Quality) — Rules-based screen for quality metrics; tends to hold resilient mega-caps. vaneck.com.au
• VGS (MSCI World ex-AU) — Low-fee, broad global exposure; ideal core building block. vaneck.com.au
• IHVV / IHOO (Hedged) — Same exposures as IVV/IOO with currency hedging to reduce AUD swings. BlackRock
• MOAT — Morningstar’s “wide moat” picks; active-index US large/mid caps aiming for durable competitive advantages. vaneck.com.au
• MVW (Equal-weight Australia) — Reduces big-four bank/big miner dominance; helps diversify local beta. vaneck.com.au
• IOZ / STW (ASX 200) — Simple, liquid Aussie market trackers with low fees and franked income. BlackRock+1
• MVB / MVR / VHY — Sector & style tilts for income or resources beta; inherently cyclical/concentrated.

How to Use this List (without over-complicating it)?

• Pick a core, then sprinkle: Most investors can anchor to one global core ETF (VGS / IOO / QUAL) + one US core (IVV), then tile on a satellite like NDQ if you want higher growth potential.
• Decide on FX: If your income/spending is mostly in AUD and you hate currency whiplash, consider a hedged split (e.g., 50% IVV + 50% IHVV). BlackRock
• Don’t ignore costs & structure: Check MERs, liquidity/spreads, distribution policy (and franking for AU funds). Factsheets and PDS pages spell this out.

Conclusion: What the Last Decade Tells ETF Investors

The last 10 years have shown one clear lesson — **ETFs are no longer passive passengers; they are the market itself. Australian investors who diversified beyond the local market into global and US exposures have outperformed by wide margins.

The BetaShares NDQ led the scoreboard with ~20 % p.a., but the strength of global ETFs like IVV, IOO, and VGS proves that steady compounding often beats stock-picking. Thematic success stories—like technology, healthcare, and quality—reflected structural economic changes rather than short-term hype.

Australian ETFs like IOZ, STW, and VHY delivered stable, franked income and are the backbone for local investors and SMSFs. Combining these with global growth engines created the most balanced outcomes.

Going forward, expect leadership to rotate. Quality, energy transition, AI, and decarbonisation themes may shape the next decade of ETF returns. Investors who focus on diversification, costs, and disciplined reinvestment will likely remain ahead of inflation and volatility.

Final Summary

• Global growth outperformed Australian-only funds over the last decade.
• Tech & quality factors dominated returns between 2015 and 2025.
• Low-cost core ETFs (IVV, VGS, QUAL) are the foundation of most successful portfolios.
• Hedged versions (IHVV, IHOO) smooth short-term currency shocks.
• Income seekers can mix VHY, MVB and MVR for yield and franking.
• Balanced investors benefit from a core-satellite structure — one global core ETF + one high-growth satellite (like NDQ).

Smart ETF investing is about consistency, not speculation. Build a structure, reinvest income, and let compounding do the heavy lifting.

ETF Investing FAQs for Australian Investors

1. What is the Best ETF in Australia for Long Term?

The BetaShares NASDAQ-100 ETF (ASX: NDQ) has been one of Australia’s best long-term performers, averaging around 20 % p.a. over the last decade. It has exposure to the world’s largest technology companies like Apple, Microsoft, and Nvidia.

For investors who want stability and global diversification, iShares S&P 500 (IVV) and Vanguard MSCI International Shares (VGS) are also top long-term picks. Both have strong 10-year returns in the mid-teens and track broad global markets with very low fees.

Investor takeaway: Combine a global growth ETF like NDQ or IVV with a broad Australian index fund like VAS or IOZ for balanced, long-term compounding.

2. What is the 3-5-10 Rule for ETFs?

The 3-5-10 rule is a simple investing rule of thumb that ETFs should be held for at least:

• 3 years for short-term market cycles to average out,
• 5 years for medium-term compounding and dividends to show effect, and
• 10 years for the full benefit of growth, reinvested income and reduced timing risk.

In Australia, investors who held global equity ETFs like NDQ or QUAL for the full 10 years got the best returns. The rule shows that ETFs work best as long-term, set-and-forget investments, not trading tools.

3. Which ETF Does Warren Buffett Recommend?

Warren Buffett recommends a low-cost S&P 500 index ETF for most people. He says:

“A low-cost S&P 500 fund is the best investment most people can make.”

For Australian investors, the options are:

• iShares S&P 500 ETF (ASX: IVV) — 0.03 % MER
• Vanguard S&P 500 ETF (ASX: VOO, US-listed)

Both track the same index and give you exposure to the 500 biggest US companies. Buffett’s logic is simple — broad diversification, low fees and patience beats most active strategies.

4. What is the 70/30 Rule ETF?

The 70/30 rule is a balanced portfolio — 70 % growth assets (shares, ETFs) and 30 % defensive assets (bonds, cash).

In ETF terms, an Aussie example could be:

• 70 % equity ETFs (e.g. VGS, NDQ, IOZ, IVV)
• 30 % bond or fixed-income ETFs (e.g. VAF, IAF, or AAA Cash ETF)

This works for investors who want growth and volatility protection. Younger investors may go 80/20, while retirees may go 60/40 or even 50/50 depending on risk tolerance and income needs.

5. What is the Highest-paid ETF in Australia?

“Highest-paid” means ETFs with the highest dividend yields. In Australia, the top ones are:

• Vanguard Australian Shares High Dividend Yield ETF (VHY) – yield around 5–6 % p.a., fully franked
• VanEck Australian Banks ETF (MVB) – strong yield exposure to CBA, NAB, WBC, ANZ
• Betashares Australian Dividend Harvester (HDIV) – targets high-yield stocks dynamically

These ETFs give you consistent income but may not grow as much as global growth funds like NDQ or QUAL.

Investor insight: Many Australians combine one high-dividend ETF for income and one growth ETF for capital growth.