Best ETFs for Beginners in Australia (2026)
If you're just starting out, one or two broad, low-cost ETFs are usually all you need. These are the simplest building blocks.
It depends on the job you need the ETF to do. Here are the biggest and cheapest in each group:
- One-fund portfolios: VDHG is the largest ($4.1bn) and DHHF the cheapest (0.19% a year).
- Two-fund building blocks: VAS is the largest ($26.7bn) and A200 the cheapest (0.04% a year).
Data to 30 September 2026 from the TMX Australia funds report. Returns include distributions. General information only, not a recommendation.
All the options compared
One-fund portfolios
The whole job done in one ETF.
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| VDHG | Vanguard Diversified High Growth Index ETF | 0.27% | $4.1bn | +7.5% | +7.7% | 0.03% |
| DHHF | Betashares Diversified All Growth ETF | 0.19% | $1.7bn | +8.1% | +9.2% | 0.04% |
| VDGR | Vanguard Diversified Growth Index ETF | 0.27% | $1.6bn | +5.6% | +5.9% | 0.03% |
Two-fund building blocks
An Australian and a global fund, for those who want to choose their own mix.
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| VAS | Vanguard Australian Shares Index ETF | 0.07% | $26.7bn | +2.2% | +6.5% | 0.02% |
| VGS | Vanguard MSCI Index International Shares ETF | 0.18% | $18.7bn | +10.1% | +11.8% | 0.02% |
| A200 | Betashares Australia 200 ETF | 0.04% | $11.1bn | +2.9% | +6.9% | 0.02% |
| BGBL | Betashares Global Shares ETF | 0.08% | $5.5bn | +10.4% | – | 0.02% |
Compare the biggest side by side → · Check how much they overlap →
Spread is the average gap between the buy and sell price: lower is cheaper to trade. 5Y a year is the average yearly total return over five years. Past performance is not a reliable indicator of future performance.
How closely each ETFs for beginners tracks its index
An index fund should return its index, less its fee. The gap below is each fund's return after fees minus its own benchmark. A gap close to zero means it has done its job well. Over 5 years, VGS tracked its index most closely, beating it by 0.05% a year.
| ETF and benchmark | Fee | 1Y gap | 3Y gap a year | 5Y gap a year | Verdict |
|---|---|---|---|---|---|
| VGSMSCI World ex-Australia Index (net dividends, AUD) | 0.18% | +0.02% | +0.04% | +0.05% | Tracking well |
| A200Solactive Australia 200 Index | 0.04% | +0.07% | -0.02% | -0.04% | Tracking well |
| VASS&P/ASX 300 Index | 0.07% | -0.05% | -0.04% | -0.04% | Tracking well |
| VDGRVanguard composite benchmark (weighted indexes) | 0.27% | -0.29% | -0.36% | -0.37% | Tracking well |
| DHHFBetashares composite benchmark (weighted indexes) | 0.19% | -0.39% | -0.50% | -0.41% | Lagging its index |
| VDHGVanguard composite benchmark (weighted indexes) | 0.27% | -0.35% | -0.45% | -0.45% | Lagging its index |
| BGBLSolactive GBS Developed Markets ex Australia Large & Mid Cap Index | 0.08% | +0.14% | +0.16% | – | Ahead of its index |
Gap = fund return after fees minus its benchmark. Issuer figures to October 2026. Hedged funds are measured against the hedged version of their index. Funds without published benchmark figures are left out. See every ETF vs its benchmark →
What to consider
- Start simple. More ETFs isn't more diversification if they hold the same companies.
- Keep fees low. A 0.5% difference costs tens of thousands over a working life.
- Invest regularly and leave it. Time in the market has beaten timing the market for most people.
- Brokerage. Check what your broker charges per trade before investing small amounts often.
