UPDATE: Australian investors are witnessing a remarkable surge in exchange-traded funds (ETFs), with returns soaring between 31% and 93% in 2025. New data reveals that a staggering $53 billion was funneled into ASX ETFs last year, marking a 75% increase compared to 2024.
The standout performer, the Global X Copper Miners ETF (ASX: WIRE), delivered an astounding 93% return, closing out the year at $22.20 per share. The surge is fueled by a booming global demand for copper, essential in the green energy transition. Copper prices skyrocketed 42% last year, reaching record highs above US$6 per pound earlier this month. WIRE offers extensive geographical diversification, with investments spanning 39 stocks across several countries.
Among the key holdings, Sandfire Resources Ltd (ASX: SFR) represents 3.2% of the fund, while BHP Group Ltd (ASX: BHP), the world’s leading copper producer, comprises 4%. Other notable contributions come from Capstone Copper Corp (ASX: CSC) at 3% and Develop Global Ltd (ASX: DVP) at 0.36%.
Another impressive performer is the Vaneck Global Defence ETF (ASX: DFND), which saw a 57% increase, finishing the year at $36.74. This ETF tracks the MarketVector Global Defence Industry Index and holds 36 shares, including major players like Thales SA and RTX Corp. The ongoing geopolitical tensions are driving demand for defense-related investments, making DFND an attractive option for investors.
The Plato Global Alpha Fund Complex ETF (ASX: PGA1) also made headlines, yielding a 31% return, closing the year at $36.74. This ETF aims to outperform the MSCI World Net Returns Unhedged Index by 4% per annum. It boasts over 250 holdings, benefiting from tech giants like Nvidia Corp (NASDAQ: NVDA) and Microsoft Corp (NASDAQ: MSFT).
Investment expert Andrew Wielandt from DP Wealth Advisory highlights the ETF’s appeal, noting its consistent performance and strategic allocations. “The outlook remains promising, particularly with technology growth,” Wielandt stated.
These developments are reshaping the investment landscape in Australia, as investors seek safer, diversified options amid market volatility. With the ongoing momentum, analysts suggest that these ETFs could continue to yield significant returns in the coming months.
As investors consider their strategies for the future, the question arises: which ETFs will lead the charge in 2026? Watch for further updates as market conditions evolve.
Stay tuned for the latest insights on the ASX and global investment opportunities as this story develops.
