Top Performing Australian ETFs: 1-Year, 3-Year, 5-Year Returns
Performance is one of the first things investors look at when researching ETFs. However, understanding performance data requires context and a long-term perspective. In this analysis, we'll explore the top performing ETFs across different timeframes and explain what these numbers really mean for your investment decisions.
Understanding Performance Metrics
ETF performance is typically measured as total return, which includes both capital gains (or losses) and distributions (dividends). When comparing performance:
- 1-year returns show recent performance but can be volatile
- 3-year returns provide more meaningful medium-term trends
- 5-year returns offer better insight into long-term performance patterns
It's important to remember that past performance is not indicative of future results. Markets are unpredictable, and yesterday's winners aren't guaranteed to be tomorrow's winners. However, understanding historical performance can help you make more informed decisions.
Top 1-Year Performers
These ETFs have delivered the strongest returns over the past 12 months:
Top 1-Year Performers
| ETF | Name | 1-Year Return | Fee | FUM |
|---|---|---|---|---|
| GDX | VanEck Gold Miners ETF | 119.80% | 0.53% | $1.4B |
| MNRS | Betashares Global Gold Miners ETF - Currency Hedged | 118.04% | 0.57% | $200.8M |
| ETPMPT | Global X Physical Platinum | 76.23% | 0.49% | $9.5M |
| ETPMAG | Global X Physical Silver | 75.96% | 0.49% | $134.2M |
| ACDC | Global X Battery Tech & Lithium ETF | 67.50% | 0.69% | $658.2M |
| XMET | Betashares Energy Transition Metals ETF | 66.99% | 0.69% | $57.2M |
| IKO | iShares MSCI South Korea ETF | 61.47% | 0.45% | $108.5M |
| ETPMPM | Global X Physical Precious Metals Basket | 59.59% | 0.44% | $11.3M |
| DTEC | Global X Defence Tech ETF | 59.31% | 0.50% | $101.9M |
| PMGOLD | Perth Mint Gold | 57.06% | 0.15% | $169.4M |
| NUGG | VanEck Gold Bullion ETF | 56.99% | 0.25% | $220.9M |
| GXLD | Global X Gold Bullion ETF | 56.62% | 0.15% | $468.6M |
| GLDN | iShares Physical Gold ETF | 56.56% | 0.18% | $341.9M |
| GOLD | Global X Physical Gold | 56.36% | 0.40% | $6.0B |
| DFND | VanEck Global Defence ETF | 55.78% | 0.65% | $254.2M |
Short-term performance can be influenced by many factors, including market conditions, sector rotations, and economic cycles. While strong recent performance is encouraging, it's essential to consider longer-term trends as well.
Top 3-Year Performers
Three-year returns provide a better sense of how ETFs have performed through different market conditions:
Top 3-Year Performers
| ETF | Name | 3-Year Return | Fee | FUM |
|---|---|---|---|---|
| CRYP | Betashares Crypto Innovators ETF | 63.91% | 0.67% | $209.6M |
| LNAS | Global X Ultra Long Nasdaq 100 Complex ETF | 55.35% | 1.00% | $70.0M |
| FANG | Global X FANG+ ETF | 54.72% | 0.35% | $1.6B |
| GDX | VanEck Gold Miners ETF | 46.14% | 0.53% | $1.4B |
| SEMI | Global X Semiconductor ETF | 44.57% | 0.45% | $461.1M |
| MNRS | Betashares Global Gold Miners ETF - Currency Hedged | 41.07% | 0.57% | $200.8M |
| ESPO | VanEck Video Gaming and Esports ETF | 38.71% | 0.55% | $105.8M |
| ETPMAG | Global X Physical Silver | 37.26% | 0.49% | $134.2M |
| ATOM | Global X Uranium ETF | 35.99% | 0.69% | $95.3M |
| HYGG | Hyperion Global Growth Companies Fund - Active ETF | 34.96% | 0.70% | $3.7B |
| PMGOLD | Perth Mint Gold | 34.55% | 0.15% | $169.4M |
| GOLD | Global X Physical Gold | 34.21% | 0.40% | $6.0B |
| NUGG | VanEck Gold Bullion ETF | 34.03% | 0.25% | $220.9M |
| GGUS | Betashares Geared US Equities Currency Hedged Complex ETF | 33.59% | 0.80% | $355.4M |
| GAME | Betashares Video Games and Esports ETF | 33.32% | 0.57% | $43.9M |
Three-year performance helps smooth out short-term volatility and gives you a sense of how an ETF performs across different market cycles. This timeframe is particularly useful for understanding how ETFs respond to various economic conditions.
Top 5-Year Performers
Five-year returns offer the most meaningful insight into long-term performance:
Top 5-Year Performers
| ETF | Name | 5-Year Return | Fee | FUM |
|---|---|---|---|---|
| FANG | Global X FANG+ ETF | 26.34% | 0.35% | $1.6B |
| GDX | VanEck Gold Miners ETF | 24.07% | 0.53% | $1.4B |
| ETPMAG | Global X Physical Silver | 22.29% | 0.49% | $134.2M |
| PMGOLD | Perth Mint Gold | 21.67% | 0.15% | $169.4M |
| GOLD | Global X Physical Gold | 21.26% | 0.40% | $6.0B |
| MNRS | Betashares Global Gold Miners ETF - Currency Hedged | 20.63% | 0.57% | $200.8M |
| IOO | iShares Global 100 ETF | 20.26% | 0.40% | $5.5B |
| GEAR | Betashares Geared Australian Equities Complex ETF | 19.51% | 0.78% | $571.1M |
| GGUS | Betashares Geared US Equities Currency Hedged Complex ETF | 19.47% | 0.80% | $355.4M |
| LNAS | Global X Ultra Long Nasdaq 100 Complex ETF | 19.25% | 1.00% | $70.0M |
| BNKS | Betashares Global Banks ETF - Currency Hedged | 19.00% | 0.57% | $128.6M |
| NDQ | Betashares NASDAQ 100 ETF | 18.78% | 0.48% | $7.7B |
| SPY | SPDR S&P 500 ETF | 17.99% | 0.09% | $398.7M |
| VVLU | Vanguard Global Value Equity Active ETF | 17.92% | 0.28% | $985.5M |
| IVV | iShares S&P 500 ETF | 17.88% | 0.04% | $13.2B |
Five-year performance data is valuable because it typically includes both bull and bear market periods, giving you a more complete picture of how an ETF performs across different market conditions.
Performance Statistics
Average Performance Statistics:
- 1-Year Average: 13.74%
- 3-Year Average: 13.68%
- 5-Year Average: 8.77%
These statistics provide context for understanding whether a particular ETF's performance is above or below average. Remember, average performance doesn't mean mediocre performance—it's simply a benchmark for comparison.
Why Long-Term Perspective Matters
Investing is a long-term endeavour. While short-term performance can be exciting (or concerning), what really matters is how your investments perform over decades, not months or even years.
Here's why a long-term perspective is crucial:
-
Market Cycles: Markets go through cycles. Short-term performance might reflect temporary conditions rather than the ETF's true potential.
-
Compounding: The power of compounding works best over long timeframes. Small differences in annual returns become significant over 20-30 years.
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Volatility Smoothing: Longer timeframes smooth out volatility. A bad year or two doesn't define long-term performance.
-
Investment Objectives: Most investors have long-term goals (retirement, wealth building). Performance over 5+ years is more relevant than 1-year returns.
Factors Influencing Performance
ETF performance is influenced by many factors:
- Underlying Index Performance: Most ETFs track an index, so their performance reflects that index
- Sector Exposure: ETFs focused on high-performing sectors will show stronger returns during those sectors' strong periods
- Geographic Exposure: International ETFs are affected by currency movements and overseas market conditions
- Fees: Higher fees reduce returns, all else being equal
- Market Conditions: Bull markets lift most ETFs; bear markets test their resilience
Interpreting Performance Data
When reviewing performance data, consider:
- Timeframe: Longer timeframes are generally more meaningful
- Consistency: Steady performance may be preferable to volatile swings
- Context: Compare performance to relevant benchmarks and similar ETFs
- Fees: Remember that fees reduce returns, so net performance matters most
- Your Goals: Performance should align with your investment objectives and risk tolerance
The Importance of Diversification
While it's interesting to see which ETFs have performed best, remember that diversification is key to managing risk. A portfolio of well-diversified ETFs is generally more resilient than concentrating in the top performers of any given period.
Past performance doesn't guarantee future results, and today's winners might not be tomorrow's winners. A diversified approach helps protect against this uncertainty.
Conclusion
Understanding ETF performance requires looking beyond short-term numbers and considering long-term trends, market context, and your own investment objectives. While past performance can provide useful insights, it's just one factor in making investment decisions.
When evaluating ETFs:
- Look at multiple timeframes (1-year, 3-year, 5-year)
- Consider performance in context of fees and objectives
- Maintain a long-term perspective
- Remember that past performance doesn't guarantee future results
- Focus on building a diversified portfolio aligned with your goals
For detailed performance data on specific ETFs, visit their individual pages on our website, where you can see comprehensive performance metrics, holdings, fees, and more.
Important Disclaimer: The information on this website is general financial advice only and is issued by The Rask Group Pty Ltd. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire any financial product. If you don't know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Financial Services Guide before using this website.