ETFs stand out as the best investment choice, offering an ideal mix of flexibility, diversification, and cost efficiency that traditional investments can’t match. These funds have transformed how investors build their portfolios, providing access to a variety of stocks and assets while allowing trading similar to that of regular shares on the stock market.
Investors seeking income, growth, or tactical opportunities will find that the best ETF to invest in combine proven performance with strategic positioning. The JPMorgan Equity Premium Income ETF (JEPI) exemplifies this with its Forward Dividend Yield of 7.53% and a 3-year CAGR of 12.22%. The Invesco Total Return Bond ETF (GTO) offers a Forward Dividend Yield of 5.29%. The Vanguard S&P 500 ETF stands out as one of the largest and most popular options, with an incredibly low expense ratio of 0.03%. This makes it particularly appealing to cost-conscious investors who want broad market exposure.
Vanguard S&P 500 ETF (VOO)
The Vanguard S&P 500 ETF is the lifeblood of investment options for anyone seeking broad exposure to the American stock market through a single, budget-friendly vehicle. This fund was established in September 2010 and has since grown to become one of the world’s most accessible ETFs, with total net assets of approximately AUD 1,259.38 billion.
ETF Overview
VOO follows the Standard & Poor’s 500 Index, which lists 500 of America’s largest publicly traded companies. The fund uses an indexing approach that matches the performance of this measure. The S&P 500 has expanded to encompass more than 500 stocks since its inception in 1957. It has produced a average annual growth rate of roughly 10.26%, making it an accurate indication of the state of the US economy.
The fund matches the S&P 500 by holding the same stocks in similar proportions to their index weightings. This strategy ensures that VOO provides an accurate representation of the large-cap segment of the US market, which comprises approximately 80% of the total US equity market. A committee oversees which companies join the index, considering factors such as market capitalisation, liquidity, and sector representation.
Key Features of Vanguard S&P 500 ETF
VOO’s market-cap weighting method naturally allocates more funds to larger companies based on their market capitalisation. This approach uses the market’s collective wisdom about each company’s worth while keeping trading costs low. The fund includes all 500 index members, which spreads risk across multiple sectors of the American economy.
Technology stocks accounted for approximately 35% of the allocation by July 2025. The top 10 holdings represented the most significant portion of the index (38%) in several decades. Many of these large companies, such as Apple and Microsoft, operate various types of businesses, which reduces the risk of relying on a single product or service.
The Vanguard S&P 500 ETF maintains a very low cash position. It stays fully invested to maximise market exposure. This helps investors when markets rise, but may lead to larger swings during market downturns compared to funds that maintain cash reserves.
VOO stands out as one of the best ETFs for several reasons:
- Unparalleled Diversification
- Structural Efficiency
- Exceptional Liquidity
- Tax Efficiency
Vanguard S&P 500 ETF Pricing and Fees
Perhaps the best thing about VOO is how inexpensive it is. The fund’s expense ratio is a mere 0.03%. This means investors pay only AUD 4.59 per year for every AUD 15,289.90 they invest. VOO ranks among the most cost-efficient investment options available, with fees significantly lower than those charged by others.
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust ranks as a technology-focused powerhouse among the best ETFs. This investment vehicle gives concentrated exposure to industry-leading pioneers. The fund started in 1999 as PowerShares QQQ Trust ETF and now manages over AUD 616.22 billion in assets. Today, it stands as the fifth-largest ETF in the United States.
ETF Overview
The Invesco QQQ Trust tracks the Nasdaq-100 Index, consisting of the top 100 non-financial companies listed on the Nasdaq Stock Market. Unlike broader market ETFs, QQQ gives direct access to companies pioneering long-term themes such as cloud computing, big data, mobile payments, streaming services, and electric vehicles. Many people view it as a technology fund, but QQQ actually spans multiple sectors with varying allocations.
Quarterly rebalancing and yearly reconstitution help the fund and its underlying index maintain proper market representation. This systematic approach means the ETF reflects the changing digital world of market leaders. QQQ uses a modified capitalisation method that controls the largest companies’ influence through constraints and balances the index with all members
Why Invesco QQQ Trust Is a Top Pick
Several compelling advantages set Invesco QQQ Trust apart. The ETF’s focused exposure to growth sectors has led to exceptional results. It has beaten the S&P 500 seven out of the last ten years as of September 2025.
QQQ offers diversification across multiple innovative themes despite its technology focus. The fund invests in 64 companies (84% of the index weight) that hold patents in 35 key areas of disruptive technology, including artificial intelligence, energy transition, and healthcare.
High liquidity makes Invesco QQQ Trust one of the most actively traded securities, with daily trading volume exceeding 58.7 million shares. Investors can buy or sell positions efficiently with minimal price impact.
QQQ fits different roles based on investment strategy and risk tolerance:
- A core growth component in diversified portfolios
- A tactical allocation to innovation-driven sectors
- A thematic investment without single stock selection
Invesco QQQ Trust Pricing and Fees
QQQ charges a competitive 0.20% expense ratio. Investors pay approximately AUD 30.58 per year for every AUD 15,289.90 invested. While not the cheapest ETF available, these fees seem reasonable given the fund’s focused exposure and strong history.
The ETF’s robust daily trading volume of 58.7 million shares typically results in narrow bid-ask spreads, reducing trading costs.
In December 2025, QQQ’s market price was approximately AUD 619.71 (day range: AUD 617.77 to AUD 621.65), with a 52-week range of AUD 402.39 to AUD 637.01. The fund yields 0.45% in dividends, having recently paid AUD 1.21 with a December 22, 2025, ex-dividend date.
Lipper gives QQQ top scores (5) in Total Returns, Consistent Return, Tax Efficiency, and Expense categories. These ratings highlight the fund’s effectiveness across key metrics that matter to ETF investors seeking quality investments.
JPMorgan Equity Premium Income ETF (JEPI)
Income investors seeking to mitigate volatility should consider the JPMorgan Equity Premium Income ETF. This actively managed fund, launched in Australia in November 2022, grew faster than expected. The fund now manages AUD 60.55 billion in assets as of 2025.
ETF Overview
JEPI has two primary objectives: to provide a monthly income and market exposure with lower volatility. The fund takes an innovative approach by combining defensive stocks with options strategies. Unlike standard ETFs that follow an index, JEPI picks stocks through detailed research and uses options to create extra income.
The ETF’s design helps it grow capital while providing steady income. JEPI aims to match a significant portion of the S&P 500 Index returns with lower volatility, while also providing monthly payments. This balanced strategy works exceptionally well during uncertain market conditions.
Key Features of JPMorgan Equity Premium Income ETF
JEPI’s foundation is a broad portfolio of about 123 large-cap stocks. The fund team selects these companies through research that identifies those with good risk-return potential. These companies tend to show more stable earnings and stock prices than the market average.
The fund’s secret sauce is its options strategy. JEPI sells out-of-the-money S&P 500 Index call options against its stock holdings. These options generate additional income beyond regular stock dividends. The team spreads one-month calls across different weeks to spread out expiration dates and strike prices.
Instead of writing call options directly, JEPI buys equity-linked notes (ELNs) that profit from those call options. The team mitigates risks by collaborating with multiple banks and only working with top financial institutions that undergo regular checks.
Why JPMorgan Equity Premium Income ETF Is a Top Pick
JEPI stands out because it generates exceptional income. The fund’s 30-day SEC yield sits at 8.21% with a 12-month rolling dividend yield of 8.29%. These numbers are twice what you’d typically see from regular dividend ETFs.
The fund also offers a smoother ride in equity investing. It targets returns of 6% to 10% annually, approximately 85% of the S&P 500’s performance, with 35% less volatility. This stability proved valuable during market drops. The fund beat the S&P 500 by 14.23 percentage points in the 2022 market crash.
JEPI protects against downside risks while maintaining some room for growth. The options strategy might limit some gains, but the high-quality stocks can still increase in value. This mix is suitable for cautious investors or retirees who require both income and growth.
Monthly payments add another plus, compared to the usual quarterly dividends. These payments fluctuate with market conditions and often increase when markets become volatile, and option premiums rise.
JPMorgan Equity Premium Income ETF Pricing and Fees
JEPI charges 0.35% in fees, which means AUD 53.51 per year for every AUD 15,289.90 invested. This costs more than basic index ETFs but remains competitive for an active fund that utilises complex options.
The ETF trades well thanks to its popularity. With over AUD 60 billion in assets, it’s the market’s biggest active ETF. This size means investors can buy and sell easily.
Most of JEPI’s payments get taxed as regular income, not qualified dividends. This makes the fund better suited for retirement accounts. The structure makes tax reporting easier than if you tried this options strategy yourself.
JEPI provides income-focused investors with a reliable way to earn money, eliminating the interest rate and credit risks associated with bonds.
Avantis International Equity ETF (AVDE)
The Avantis International Equity ETF makes expanding beyond domestic markets easy. It gives you broad access to developed markets worldwide through a research-driven approach. Since its launch in September 2019, this newer fund has grown faster to manage about AUD 10.98 billion in assets. It stands out as a strong choice for global portfolio allocation.
Key Features of Avantis International Equity ETF
AVDE holds over 3,200 stocks. This gives investors an unmatched variety across international markets. Such broad exposure helps reduce company-specific risks while capturing opportunities in different economies and sectors.
The fund spreads its investments thoughtfully across countries. Japan leads with 21.39%, followed by the United Kingdom at 12.76%, Canada at 11.78%, France at 8.60%, and Germany at 7.97%. Looking at sectors, AVDE allocates the majority of its funds to financials (24.51%), industrials (20.01%), materials (10.93%), and consumer discretionary (10.49%).
AVDE differs from typical market-cap weighted indices through its systematic focus on value and profitability factors. The fund’s weighted average book-to-market ratio is 0.53x compared to its benchmark’s 0.42x. Its weighted average profits-to-book ratio sits at 0.35x versus the benchmark’s 0.33x. These strategic choices position the fund to capture better returns linked to value and profitability premiums.
Why Avantis International Equity ETF Is a Top Pick
Several reasons make AVDE one of the best ETFs available. It offers complete international diversification by investing in developed markets that follow different economic patterns than those of the Australian or American economies. This geographical spread can help lower portfolio risk and boost risk-adjusted returns.
The fund’s factor-based strategy combines the benefits of indexing (diversification, low turnover, transparency) with the advantages of active management. AVDE targets companies with better value and profitability traits, aiming to outperform traditional market-cap-weighted indices without relying on subjective stock picking.
The fund runs efficiently in its portfolio management and trading. This optimisation aims to maximise returns while keeping risks and costs low. You can easily fit AVDE into broader investment strategies.
Avantis International Equity ETF Performance and Returns
AVDE has consistently shown strong results since its inception. By September 2025, the fund achieved year-to-date returns of 31.10%. This is a significant achievement, as it surpasses its category average of 27.08%. Its one-year return reached 21.59%, surpassing the category average of 23.69%.
Examining longer periods, AVDE demonstrates consistent strength. It earned three-year annualised returns of 13.16% and five-year returns of 11.34%. Both numbers beat category averages of 15.08% and 8.63% respectively.
Avantis International Equity ETF Pricing and Fees
AVDE charges a competitive 0.23% expense ratio. This means you pay approximately AUD 35.17 per year for every AUD 15,289.90 invested. These fees rank among the lowest in their category.
You get income payments twice a year. Recent distributions included AUD 1.44 in December 2025 and AUD 1.91 in June 2025. The fund’s 12-month yield of 2.59% beats many domestic equity ETFs.
As of December 2025, each AVDE share costs about AUD 82.22. The 52-week price ranged from AUD 58.56 to AUD 82.78. With over 774,000 shares traded daily, you can buy and sell easily without affecting market prices much.
Vanguard Growth ETF (VUG)
Looking for growth investments? The Vanguard Growth ETF (VUG) may be ideal for your portfolio if you wish to invest in innovative companies. This 21-year-old fund now manages AUD 310.53 billion in assets, making it one of the top growth-focused investment options available.
ETF Overview
VUG follows the CRSP US Large Growth Index, which includes large-cap growth stocks in the United States. The fund uses an indexing strategy that targets companies showing strong growth potential. Since its launch, VUG has maintained its focus on selecting and weighting companies based on growth factors.
Key Features of Vanguard Growth ETF
VUG stands out because of its focused sector allocation. Technology leads the way, accounting for 52% of holdings, while communication services and consumer cyclicals each comprise 14%. This makes the fund quite different from broader market options.
Why Vanguard Growth ETF Is a Top Pick
VUG’s long-term performance potential makes it special. The fund’s total returns hit 389% over the past decade, beating the S&P 500’s 289%. This demonstrates its ability to outperform the market.
The fund also provides exposure to state-of-the-art sectors without requiring you to select individual stocks. You’ll benefit from advances in technology while professional managers handle the details.
Trading volume averages more than 1.15 million shares daily, so you can buy or sell shares easily when needed.
Vanguard Growth ETF Performance and Returns
The numbers speak for themselves. VUG has averaged about 12% annual returns since 2004, beating the market’s historical 10% average. The fund is up 18.65% year-to-date as of December 2025.
Vanguard Growth ETF Pricing and Fees
VUG currently trades at AUD 751.58, with prices ranging from AUD 316.14 to AUD 505.38 over the past year. The fund’s expense ratio is just 0.04% – you’ll pay only AUD 6.12 per year for every AUD 15,289.90 invested.
The fund pays dividends quarterly with a 0.41% yield. The latest dividend was AUD 0.76 in December 2025, continuing its steady quarterly payment schedule.
Lipper gives VUG top scores (5) in the categories of Total Returns, Consistent Return, Tax Efficiency, and Expense. These ratings confirm its position among the top growth ETFs to consider adding to your portfolio.
Conclusion – Best ETF to Invest In
The right ETFs are vital building blocks of a strong investment portfolio. Let’s take a closer look at five ETFs that serve different investment goals, offering flexibility, diversification, and cost efficiency. Vanguard S&P 500 ETF (VOO) could be your best bet for broad market exposure. It comes with a tiny 0.03% expense ratio and covers the entire American economy. However, tech enthusiasts and growth-oriented investors may lean towards the Invesco QQQ Trust (QQQ). This fund has beaten the broader market by focusing on innovative companies.
The JPMorgan Equity Premium Income ETF (JEPI) is ideal for investors seeking steady income. It pays impressive monthly distributions with less market volatility. This makes JEPI an excellent choice for retirees or cautious investors seeking a steady income. Avantis International Equity ETF (AVDE) provides essential geographical diversity beyond US markets. It helps protect your portfolio when local markets struggle. The Vanguard Growth ETF (VUG) is well-suited for growth-focused portfolios. It offers great long-term performance potential by focusing on innovation-driven sectors.
These top ETFs show you don’t have to choose between diversification and targeted exposure. Each fund offers unique advantages that align with specific investment goals. Whatever your priority – income, growth, international exposure, or broad market participation – these five ETFs are excellent foundation pieces for a balanced investment portfolio. Their track record, strategic focus, and cost-effectiveness make them strong contenders to get optimal market exposure in 2025 and beyond.
