Low-Cost ETFs on the ASX: The Smart Way to Keep More of Your Returns in 2026

The lowest-cost ETFs focus on broad-market index tracking, delivering market returns with minimal drag from management fees. These are the ideal core holdings for long-term, hands-off investors—whether you're building wealth, saving for retirement, or simply wanting maximum efficiency.

Explore the full list and details on our Low-Cost ETFs page

Why Low-Cost ETFs Are Attractive Right Now

• Every basis point saved compounds powerfully over time

• Broad index ETFs give instant diversification across thousands of companies

• Ultra-low fees mean more of your money stays invested and working for you

• Simplicity and transparency—no active manager risk or style drift

• Perfect for dollar-cost averaging and set-and-forget strategies

• Increasing competition keeps pushing costs lower across the board

These ETFs shine as the core of most portfolios (60–100% allocation), with room for small satellite tilts if desired.

Key Low-Cost ETFs: MER & Investment Mandate + Reasons to Invest

Broad Australian Equities (Lowest-Fee Local Exposure)

• VAS (Vanguard Australian Shares Index ETF) — MER 0.07% Mandate: Tracks the S&P/ASX 300 Index (broad Australian large- and mid-cap shares). Reasons to invest: One of the cheapest ways to own the entire Australian sharemarket; excellent liquidity, franking credits, and long-term compounding efficiency.

• A200 (BetaShares Australia 200 ETF) — MER 0.04% Mandate: Tracks the Solactive Australia 200 Index (top 200 ASX companies). Reasons to invest: Currently the lowest-fee broad Australian equity ETF; very similar exposure to VAS with even lower cost drag.

• IOZ (iShares Core S&P/ASX 200 ETF) — MER 0.09% Mandate: Tracks the S&P/ASX 200 Index. Reasons to invest: Reliable, low-cost access to Australia’s largest companies; strong liquidity and issuer backing.

Broad Global / International Equities

• VGS (Vanguard MSCI International Shares ETF) — MER 0.18% Mandate: Tracks the MSCI World ex Australia Index (developed markets outside Australia). Reasons to invest: Extremely low-cost global diversification; captures ~98% of world equity market cap outside Australia; essential for reducing home bias.

• IVV (iShares S&P 500 ETF) — MER 0.04% Mandate: Tracks the S&P 500 Index (US large-cap). Reasons to invest: One of the lowest-fee ways to own the world’s biggest growth engine; unmatched efficiency for US exposure.

• BGBL (Betashares Global Shares ETF) — MER 0.08% Mandate: Tracks a broad global developed markets index. Reasons to invest: Very low cost, broad international coverage; excellent alternative to VGS.

Diversified All-in-One (Lowest-Fee Balanced Options)

• DHHF (BetaShares Diversified All Growth ETF) — MER 0.19% Mandate: 100% global equities (Australian + international, all-cap). Reasons to invest: Lowest-fee all-in-one growth ETF; fully diversified across the world in a single holding.

• VDHG (Vanguard Diversified High Growth Index ETF) — MER 0.27% Mandate: ~90% growth assets + 10% defensive (global shares + bonds). Reasons to invest: Ready-made high-growth diversified portfolio; automatic rebalancing at a very reasonable cost.

• VDGR (Vanguard Diversified Growth Index ETF) — MER 0.27% Mandate: ~70% growth + 30% defensive. Reasons to invest: Balanced global diversification with more stability; ideal for moderate-risk investors.

How to Compare These ETFs Using Our Tool

Visit reviewetf.com.au/compare-etfs to analyse up to 3 ETFs side-by-side. It highlights:

• Costs

• Performance

• Asset Allocation

Add tickers (e.g., A200 vs. VGS vs. DHHF) to quickly see which delivers the lowest fees for your desired exposure.

Bottom Line

In 2026, the lowest-cost ETFs are the clear winners for long-term core portfolios. Start with ultra-cheap broad-market options like A200 (0.04%) or VAS (0.07%) for Australia, IVV (0.04%) or VGS (0.18%) for global, or a single all-in-one like DHHF (0.19%) if you want everything in one trade.

Browse the full list of Low-Cost ETFs and run comparisons today.