Also read: The best performing ETFs of 2026
Best low cost ETFs on the ASX
With annual fees from 0.03% p.a. and average annual returns up to 7.23% (over 5 years), these ETFs let you cheap out on the fees, not the returns.
Key takeaways
- Prioritise ETFs with annual fees under 0.10% p.a. as these can still deliver strong returns like SPY's 22.55% over three years.
- The lowest ETF management fees on the ASX are often 0.03% p.a. offered by funds like Vanguard VTS and Macquarie MQAE.
- While low fees are beneficial, top-performing ETFs can have fees higher than the average 0.53% management expense ratio.
Investors who want to increase their returns in either superannuation or exchange traded funds (ETFs) should focus on the fees they are paying and what they are getting in return.
But while fees play a key role in the long-term success of many ETFs, it's the overall performance of the fund that matters most, especially in terms of how it compares to the rest of the market.
This guide compares both the cheapest and best-performing ETFs to give you a broader picture of the market, as well identifying the best-performing low cost ETFs that are available on the Australian Securities Exchange (ASX).
What is the best low cost ETF on the ASX?
According to ASX data to 30 June 2026, the best-performing low cost ETFs in Australia are:
- SPDR S&P 500 ETF (ASX: SPY): Up 19.16%
- Vanguard US Total Market Shares Index ETF (ASX: VTS): 19.10%
- iShares S&P 500 ETF (ASX: IVV): Up 19.00%
This list is based on the performance of ASX ETFs over the last 3 years (as of 30 June 2026). To be considered "low cost", an ETF must have a management fee of 0.10% or less.
Low cost ETFs on the ASX
Below are the 20 cheapest ETFs on the ASX by management fees, or "management expense ratio" (MER). This is the annual fee charged by fund managers as a percentage of the assets held in the fund.
The returns shown are net, meaning fees have been removed prior to the performance figures.
| Fund Name | Code | Type | Fee (% p.a.) | 1-yr return | 3-yr return | 5-yr return |
|---|---|---|---|---|---|---|
| Global X Australia 300 ETF | A300 | ETF | 0.03 | n/a | n/a | n/a |
| Macquarie Core Australian Equity Active ETF | MQAE | Active | 0.03 | 5.61% | n/a | n/a |
| Vanguard US Total Market Shares Index ETF | VTS | ETF | 0.03 | 16.60% | 19.10% | 14.11% |
| iShares S&P 500 ETF | IVV | ETF | 0.04 | 15.62% | 19.00% | 15.04% |
| Vanguard All-World ex US Shares Index ETF | VEU | ETF | 0.04 | 21.56% | 17.81% | 10.85% |
| Betashares Australia 200 ETF | A200 | ETF | 0.04 | 7.42% | 11.96% | 9.37% |
| SPDR S&P/ASX 200 ESG ETF | E200 | ETF | 0.05 | 6.59% | 11.50% | 9.42% |
| SPDR S&P/ASX 200 ETF | STW | ETF | 0.05 | 7.12% | 11.84% | 9.20% |
| iShares Core S&P/ASX 200 ETF | IOZ | ETF | 0.05 | 7.22% | 11.80% | 9.14% |
| Vanguard S&P 500 US Shares Index ETF | V500 | ETF | 0.07 | n/a | n/a | n/a |
| Betashares Bloomberg Ausbond Composite ETF | COMP | ETF | 0.07 | n/a | n/a | n/a |
| SPDR S&P World ex Australia Carbon Aware ETF | WXOZ | ETF | 0.07 | 10.62% | 16.85% | 12.09% |
| iShares S&P Midcap ETF | IJH | ETF | 0.07 | 18.37% | 13.72% | 10.62% |
| iShares S&P Small-Cap ETF | IJR | ETF | 0.07 | 28.98% | 14.14% | 8.89% |
| Vanguard Australian Shares Index ETF | VAS | ETF | 0.07 | 7.18% | 11.82% | 8.89% |
| iShares Core Cash ETF | BILL | ETF | 0.07 | 3.93% | 4.28% | 3.17% |
| Macquarie Core Global Equity Active ETF | MQEG | Active | 0.08 | 17.08% | n/a | n/a |
| Betashares Global Shares ETF | BGBL | ETF | 0.08 | 15.52% | 18.46% | n/a |
| Vanguard S&P 500 US Shares Index (Hedged) ETF | V5AH | ETF | 0.09 | n/a | n/a | n/a |
| iShares Core MSCI World ex Australia ESG ETF | IWLD | ETF | 0.09 | 15.21% | 18.11% | 13.90% |
| Source: ASX | Period ending: 30 June 2026 | ||||||
How do the cheapest ETFs compare to the market?
According to the latest data, the cheapest ETFs in Australia are now the Global X Australia 300 ETF (A300), Macquarie Core Australian Equity Active ETF (MQAE) and Vanguard US Total Market Shares Index (VTS) ETF, all with an MER of 0.03%.
The Vanguard VTS ETF has returned 16.60% over the 12 months to 30 June 2026, while the Macquarie Core MQAE ETF has returned 5.61% over the same period.
This means the Vanguard VTS ETF has outperformed the S&P 500 and Nasdaq-100 over the last year.
A few averages worth noting (to 30 June 2026):
- Average ETF return over 1 year: 12.55% p.a.
- Average ETF return over 3 years: 12.95% p.a.
- Average ETF return over 5 years: 7.23% p.a.
- Average ETF management fee (MER): 0.53% p.a.
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How we picked these
Finder Score for share trading platforms
We've scored over 30 share trading platforms assessing them for their core features, fees, customer experience and accessibility. Our experts give each platform a score out of 10.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Finder survey: How often do Australians trade stocks or ETFs?
| Response | |
|---|---|
| Ad-hoc | 41.32% |
| Monthly | 29.04% |
| Yearly | 17.37% |
| Weekly | 11.38% |
| Daily | 0.9% |
Source: Finder survey by Pure Profile of 1145 Australians, December 2023
How does the cheapest compare to the best?
While cheaper fees tend to correlate with above-average performance over many years, the same does not appear to be true for the top-performing funds.
If you take a look at the best performing ETFs on the Australian Securities Exchange (ASX) in 2026, you'll notice their fees aren't necessarily the cheapest. In fact, some of the highest returning funds have management fees that are well above the average management fee.
20 best performing exchange traded products in 2026
| Fund name | ASX Code | Type | Fee (% p.a) | 1 year total return |
|---|---|---|---|---|
| iShares MSCI South Korea ETF | IKO | ETF | 0.45 | 170.83% |
| Global X Semiconductor ETF | SEMI | ETF | 0.45 | 160.78% |
| Global X Hydrogen ETF | HGEN | ETF | 0.69 | 135.22% |
| Betashares Asia Technology Tigers ETF | ASIA | ETF | 0.67 | 95.60% |
| Betashares Energy Transition Metals ETF | XMET | ETF | 0.69 | 83.00% |
| Global X S&P Biotech ETF | CURE | ETF | 0.45 | 81.43% |
| Global X Green Metal Miners ETF | GMTL | ETF | 0.69 | 78.76% |
| Global X Battery Tech & Lithium ETF | ACDC | ETF | 0.69 | 78.31% |
| iShares Asia 50 ETF | IAA | ETF | 0.29 | 74.74% |
| VanEck MSCI International Value (AUD Hedged) ETF | HVLU | ETF | 0.43 | 67.26% |
| VanEck Global Clean Energy ETF | CLNE | ETF | 0.65 | 66.95% |
| Global X Ultra Long Nasdaq 100 Complex ETF | LNAS | Complex | 1.00 | 63.78% |
| Global X Copper Miners ETF | WIRE | ETF | 0.65 | 62.25% |
| Betashares Japan Currency Hedged ETF | HJPN | ETF | 0.56 | 57.93% |
| VanEck MSCI International Value ETF | VLUE | ETF | 0.40 | 53.59% |
| iShares MSCI Emerging Markets ex China ETF | EMXC | ETF | 0.25 | 53.29% |
| Global X AI Infrastructure ETF | AINF | ETF | 0.57 | 53.05% |
| SPDR S&P/ASX 200 Resources ETF | OZR | ETF | 0.34 | 50.69% |
| Global X Physical Silver | ETPMAG | SP | 0.49 | 50.56% |
| Betashares Resources Sector ETF | QRE | ETF | 0.34 | 49.58% |
| Source: ASX | Period ending: 30 June 2026 | SP = Structured Product, MF = Managed Fund / Active ETF, MER = Management Expense Ratio (aka fees). | ||||
Why are some funds cheaper than others?
Exchange traded funds typically have low management fees (MER) compared to regular managed funds because most of them are index funds. Index funds passively track a stock market index, such as the S&P/ASX200 index, so they need little legwork from the fund managers and can charge cheaper fees (MER) for the service.
Because index funds mirror the returns of the stock market, they don't usually beat it, but they do perform consistently and tend to be lower risk than other kinds of funds.
On the other hand, many of the best performing ETFs are more strategic (and may be riskier) than a standard index fund. And because of this, they often charge a higher management fee for the service.
What fees do you pay when you invest in ETFs?
These are the 3 main fees you'll need to consider when investing in an ETF:
- Management Expense Ratio (MER): This is the annual management fee charged by the ETF provider. It's typically charged before performance figures are released and is usually between 0.1–1% of assets.
- Brokerage fee: This is the fee charged by the broker or online trading platform every time you invest in a stock or ETF. This is typically around $10 to $30 per trade.
- Performance fees: Some actively managed ETFs charge a performance fee. This is typically charged as a percentage of your funds that outperform a certain benchmark.
So, do fees matter?
Fees absolutely matter, especially over many years. While ETFs are relatively new to the market, long-term studies of super fund performance show that high fees are strongly correlated with long-term performance.
Among the cheapest ETFs on the ASX, several underperformed the average over 3 years, though most beat it over 5 years. It's also worth noting that the cheapest ETFs listed above are a mix of every category – including active, passive, global, Australian, high and low-risk.
What the data above also show is that fees are not the only consideration worth thinking about – and for some investors, not the most important.
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I am finding it challenging to navigate my future finances. I’m considering selling my house and investing the funds. How do the lowest-cost, best-performing ETFs compare after removing all the fees? Would I earn more from a term deposit? What are the costs of selling the ETFs if I decide to buy another property? I want to compare buying and renting and what funds I’ll live on for my retirement years.
Hi, We can’t provide specific investment advice, and in a complex situation like this you’ll need to weigh up your options carefully. Your residence is a tax-advantaged investment relative to other strategies, so selling it might not be a good move in the long run. We’d suggest talking to a qualified financial adviser to weigh your options properly.