Reports

Best Performing ETFs Australia 2021

These ETFs were the best performing ETFs in Australia in 2021.

ETFs have surged in popularity in 2021, as investors realised the benefits of diversified investing. 

We analysed the best performing ETFs in 2021 in terms of returns. Listed below are the top five ETFs in Australia (in reverse chronological order), and the reasons why they performed so well in the past year.

Before you rush in to buy these ETFs – pause. This year’s best performers can become next year’s worst performers very easily – which is why diversified investing is so important.

The top five Australian ETFs of 2021

5. IMPQ – eInvest Better Future Fund (Managed Fund)

One year total return: 70.9%

IMPQ was a stellar performer over the last 12 months thanks to their approach of investing in sustainable companies with a tilt towards smaller companies that they can actively engage with.

4. ETFS FANG+ ETF (ASX: FANG)

One year total return: 73.0%

FANG and the broader technology sector performed exceptionally well over the last twelve months led by innovative global companies such as Alphabet (Google), Apple, Amazon and Netflix. 

3. BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

One year total return: 81.6%

ATEC took full advantage of the increased digital adoption during the COVID-19 pandemic, with companies like Afterpay, WiseTech Global and Xero benefitting.

2. K2 Australian Small Cap Fund (Hedge Fund) (ASX: KSM)

One year total return: 95.0%

KSM was the second best active performer this year, but still significantly under-performed over the long term compared to a broad based index. 

1. ETFS Battery Tech & Lithium ETF (ASX: ACDC)

One year total return: 96.0%

ACDC has benefited from the large demand in battery technology and lithium mining, which contribute to renewable energy and electric vehicle initiatives. 

Best Performing ETFs 2021

ASX CodeETF Name1 Year Total Return
ACDCETFS Battery Tech & Lithium ETF96.0%
KSMK2 Australian Small Cap Fund (Hedge Fund)95.0%
ATECBetaShares S&P/ASX Australian Technology ETF81.6%
FANGETFS FANG+ ETF73.0%
IMPQeInvest Better Future Fund (Managed Fund)70.9%
Source: ASX as of 31 March 2021
If you want to find out more about the Australian ETF landscape, head straight to our 2021 ETF report, so you make sure you know exactly what you’re investing in. 

Investment Manager

Marc has previously worked for Morgan Stanley, AMP and KPMG. He holds a Bachelor of Business (Finance/Accounting) from the University of Technology Sydney (UTS), and has completed his Chartered Financial Analyst (CFA) Level 1.

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