ASX exchange-traded funds (ETFs) are incredibly popular with Aussie investors.
We have invested a record $372 billion in them, and last year, many delivered exceptional returns for us.
Not only were the returns good, we also enjoyed the sleep-at-night-factors that naturally come with ETFs: diversification and low costs.
One of the biggest advantages of ETFs is being able to invest in global shares via our local exchange.
That is much easier than direct trading on numerous overseas exchanges.
The Australian Securities Exchange has just released the full-year performance data for ETFs in FY26.
Let’s take a look at three ASX ETFs that produced outstanding returns last year.
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Betashares Asia Technology Tigers ETF (ASX: ASIA)
ASIA ETF delivered a one-year return of 96%. The historical distribution yield is 1.7%.
The ETF invests in 50 of the largest technology and online retail shares in Asia (ex-Japan).
ASIA ETF was among the 6 best performing ASX ETFs holding global stocks in FY26.
Top holdings include SK HYNIX INC (15%), Samsung Electronics (10%), and Taiwan Semiconductor Manufacturing (9%).
VanEck MSCI International Value (AUD Hedged) ETF (ASX: HVLU)
ASX HVLU produced a one-year return of 67%. The historical distribution yield is 15.1%.
Hedging magnified distributions by up to 10x this season. HVLU paid $7.18 per unit on Wednesday.
This ETF is the hedged version of Vaneck MSCI International Value ETF (ASX: VLUE).
It tracks the performance of the MSCI World ex Australia Enhanced Value Top 250 Select 100% Hedged to AUD Index.
The Index measures the performance of 250 international large-cap and mid-cap companies in developed markets.
The companies are selected from the MSCI World ex Australia Index based on five value investing criteria.
The criteria includes price-to-book value, price-to-forward earnings; and enterprise value-to-cash flow from operations.
In a report, VanEck said value investing was back in vogue due to many macroeconomic headwinds today.
Value stocks are companies with good fundamentals that are considered to be trading below their intrinsic worth.
VanEck said value companies tend to cope better with high inflation and interest rates, and feel safer for investors than growth stocks during volatile periods.
Top holdings include Micron Technology Inc (4%), Verizon Communications Inc (2%), and Kioxia Holdings Corp (2%).
SPDR S&P/ASX 200 Resources ETF (ASX: OZR)
OZR ETF delivered a total one-year return of 51%. The historical distribution yield is 2.4%.
OZR led the 6 best performing Aussie-stock-based ETFs in FY26.
This ETF seeks to track the performance of the S&P/ASX 200 Resources Index.
OZR invests in 59 companies, predominantly miners, oil and gas suppliers, and other resource businesses like steel makers.
Top holdings include BHP Group Ltd (ASX: BHP) (40%) and Woodside Energy Group Ltd (ASX: WDS) (8%).
