3 ETFs growing in popularity with Australian investors

It is no secret that ETFs are becoming increasingly popular.

In the portfolios tracked by Sharesight, nine of the 20 most widely held securities are now ETFs, up from seven a year ago, and the four most widely held are all ETFs: Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard MSCI Index International Shares ETF (ASX: VGS), iShares S&P 500 ETF (ASX: IVV) and Betashares NASDAQ 100 ETF (ASX: NDQ).

Beneath those four, our State of the Australian Investor 2026 report shows three ETFs with more targeted portfolio roles that moved up the ownership table: Betashares Global Shares ETF (ASX: BGBL), Global X Semiconductor ETF (ASX: SEMI) and Vanguard Australian Shares High Yield ETF (ASX: VHY). While other ETFs also rose, these three cover different parts of a portfolio: global shares, a thematic industry and Australian income.

For an investor, the question is what each of these would add to a portfolio and what it would cost in return.

Are Australians holding more ETFs?

Across those portfolios, ETFs rose from 22.6% to 26.2% of portfolio value in the year to 30 June 2026. ETF purchases also outnumbered sales in each of the eight quarters to June 2026, by 3.2 to 5.4 times, against 1.5 to 1.7 times for individual shares, although the ETF ratio has fallen from 5.4 to 3.2.

These three ETFs remain far less widely held than the leaders: at 30 June 2026, BGBL was held in 1,600 portfolios and VAS in 22,353. The rankings count portfolio holdings rather than dollars invested. Sharesight’s users are engaged, largely self-directed investors, and the report notes the sample may not represent the broader Australian investing population.

What are the three ETFs?

Table 1. Ranking and key characteristics of BGBL, SEMI and VHY

Source: Sharesight and Morningstar Direct. Rankings are at 30 June 2026 and Morningstar data at 30 October 2026.

What does BGBL add to a portfolio?

BGBL climbed 48 places to 84th. It tracks the Solactive GBS Developed Markets ex Australia Large & Mid Cap Index, and holds about 1,180 large and mid-sized companies from developed markets outside Australia.

At 30 September 2026 , the fund’s 10 largest holdings made up about 29% of its assets, led by Nvidia and Apple. BGBL charges a low fee at 0.08%.

The fund was launched in May 2023, so its track record is short. Returns are to 30 September 2026. BGBL has returned 18.9% a year since launch and 10.2% over the past year. Our analysts also note the index leans towards shares that have been rising and that move more than its category peers.

The chart below shows the fund’s sector mix.

What does SEMI add to a global shares portfolio?

SEMI rose 50 places to 79th. It holds 31 semiconductor companies from around the world.

The chart below shows SEMI holdings at 23 October 2026.

Buying SEMI gives investors exposure to companies that design and make computer chips, as well as the equipment used to produce them.

Many of the new holders of SEMI were likely enticed by strong returns. Since launching in August 2021, it has returned 35.8% a year, and 109.3% over the past year (to September 2026).

Those gains came with much greater volatility, with a three-year standard deviation of 35.1%. Standard deviation measures how widely returns varied around their average, so a higher figure means an investor should expect a wider range of outcomes.

The fee is 0.45%. Global index funds weight companies by market cap and given the strong returns from the chipmakers many of them are large parts of global indexes. Investors should consider any overlap with existing holdings.

Where does VHY’s income come from?

VHY tracks the FTSE Australia High Dividend Yield Index, which ranks Australian dividend-paying companies by their forecast dividend yield and weights selected shares by their market cap.

Using forecast dividends is intended to reduce the risk of dividend traps, where a high yield is reflective of a fallen share price, although our analysts say this cannot remove the risk entirely. The fund gives investors exposure to more than 90 large Australian companies expected to pay above-average dividends, with income distributed each quarter.

Interest in income strategies is growing given the changes to way capital gains are treated. VHY rising from 14th to 9th among the most traded securities is consistent with that trend. Distributions over the past 12 months were equivalent to a 3.5% yield.

That income comes with concentration risk. The four major banks made up about 28% of assets, while BHP and Rio Tinto accounted for 15% at 30 September 2026. Our analysts note a persistent underweighting to technology and healthcare, with about 71% of assets in financial, materials and energy. VHY has returned 9.8% a year since May 2011 and 12.3% over the past year, with an annual fee of 0.25%.

The chart below shows what VHY holds at 30 September 2026.