Best ETFs for Australians in 2026
There’s no single “best” ETF — there’s a best one for each job. This guide sorts the funds Australians actually buy into three clear roles, so you can pick the right tool instead of chasing a ticker.
The short version
Want one fund and zero maintenance? An all-in-one ETF — DHHF (100% growth, 0.19%) or VDHG (90/10 growth/bonds, 0.27%) — is a complete portfolio in a single trade.
Want to build your own and control the mix? Pair an Australian core — VAS or A200 (both 0.07%, high franking) — with a global fund like VGS (0.18%). That’s the classic two-fund DIY core.
That’s genuinely the whole decision. Everything below is detail to help you pick your lane and the exact fund within it.
💡 How to read an “best ETFs” list without getting confused
The trap with these lists is comparing funds that do completely different jobs — like ranking an all-in-one portfolio fund against a single-country building block. They’re not competing.
So we’ve grouped the picks into three roles: all-in-one (a whole portfolio in one fund), Australian core (your home-market slice), and global core (your international slice). Decide which role you’re shopping for first — then the “best” becomes obvious.
The three jobs — and the best fund for each
Pick the role that matches how you want to invest, then jump to the detail.
DHHF
runner-up: VDHG
A complete equity portfolio in one trade — thousands of shares, auto-rebalanced. The set-and-forget choice.
See all-in-one picks ↓VAS / A200
0.07% · high franking
The cheapest way to own the Australian market, with the franking credits Aussies value. A DIY building block.
See Australian picks ↓VGS
~1,260 global companies
Developed-market diversification beyond Australia — the international half of a DIY portfolio.
See global picks ↓At-a-glance comparison
| ETF | Role | Fee (MER) | Yield* | Franking | What it holds |
|---|---|---|---|---|---|
| DHHF | All-in-one (100% growth) | 0.19% | ~2.2% | ~72% | ~8,000 global + Aus shares |
| VDHG | All-in-one (90/10) | 0.27% | ~3.4% | ~25% | Global + Aus shares + bonds |
| VAS | Australian core | 0.07% | ~3.1% | ~82% | ASX 300 |
| A200 | Australian core | 0.07% | ~3.5% | ~85% | Solactive Australia 200 |
| VGS | Global core | 0.18% | ~1.7% | Minimal | ~1,260 global ex-Aus |
*Trailing 12-month distribution yields, indicative only and move with markets. Fees and franking per issuer/Morningstar data, May 2026. Always confirm current figures in the relevant PDS.
🧩 Best all-in-one ETFs
DHHF & VDHG — a whole portfolio in one fund
All-in-one (or “diversified”) ETFs hold thousands of shares across Australian and global markets in a single ticker, rebalanced for you. Buy one monthly and you have a complete, diversified equity portfolio without managing anything. For most beginners and busy investors, this is the smartest starting point.
DHHF (Betashares) is our pick of the two for most long-term investors. It’s 100% growth assets — no bonds — across ~8,000 shares, at the lowest fee among all-in-one funds (0.19%). Maximum long-run growth potential, maximum simplicity. The trade-off is volatility: with no defensive allocation, it falls hard in downturns, so you need the temperament to hold through them.
VDHG (Vanguard) is the natural alternative if you want a little built-in ballast. It holds roughly 90% growth and 10% bonds at 0.27%, so it’s marginally smoother and pays a higher income yield (~3.4%), but the bond sleeve slightly drags long-run returns and the fee is higher. Choose VDHG if a small defensive buffer helps you sleep; choose DHHF if you want pure growth and the lowest fee.
The deep dive: we compare these two head-to-head, and against the VAS+VGS DIY approach, in DHHF vs VAS vs VGS — the best place to settle the one-fund-vs-build-your-own question.
🇦🇺 Best Australian-shares core
VAS & A200 — the cheap home-market slice
If you’re building your own portfolio, you’ll want an Australian-shares fund as your “home” core. Both leading options charge a rock-bottom 0.07% and carry the high franking credits that make Australian-share income so tax-friendly for local investors. They’re nearly interchangeable.
VAS (Vanguard) tracks the ASX 300 and is the most popular Australian-shares ETF by a wide margin — huge, liquid, and the default for most DIY portfolios. A200 (Betashares) tracks the Solactive Australia 200, charges the same 0.07%, and has one neat perk: it trades brokerage-free on Betashares Direct, which makes regular small investments cheaper if that’s your platform.
Honestly? For most people the choice between them is a coin-flip — pick based on your broker and which index you prefer. Both are concentrated in banks and miners (a feature of the Australian market itself), which is exactly why you pair them with a global fund.
🌏 Best global-shares core
VGS — the international half of your portfolio
An Australian-shares fund alone leaves you exposed to just ~2% of the world’s market. A global fund fixes that. VGS (Vanguard) is the standard pick: ~1,260 large developed-market companies across the US, Japan, Europe and more (excluding Australia), at a reasonable 0.18%.
VGS gives you exposure to the global growth engines — the big US tech names especially — that the Australian market simply doesn’t have. The trade-offs are a lower yield (~1.7%) and little franking (foreign companies pay foreign tax), plus unhedged currency exposure. It’s a growth play, not an income one.
Pair VGS with VAS or A200 and you’ve built the core of a globally diversified portfolio with two funds. If you also want emerging markets, some investors add a small slice of an EM fund like VGE — but that’s optional refinement, not essential.
🇦🇺 Don’t ignore franking (the Australian wrinkle)
Franking credits represent company tax already paid in Australia. As an investor you can use them to reduce your own tax bill — sometimes receiving a refund — which can make the after-tax return on Australian-share ETFs better than the headline yield suggests.
That’s why VAS and A200 (~82-85% franked) are so popular with Australian investors, why all-in-one funds with more global exposure (DHHF ~72%, VDHG ~25%) have lower franking, and why a global-only fund like VGS has almost none. It’s not a reason to avoid global diversification — just a genuine factor in how you weight Australian vs international, and a reason not to judge any ETF on raw yield alone.
How franking actually affects your tax depends on your personal situation and marginal rate — this is general information, not tax advice.
So which ETF should you actually buy?
Match the fund to your situation
- Beginner / want zero maintenance? → DHHF (or VDHG if you want a bond buffer). One fund, done.
- Want to control your Aus-vs-world split? → VAS or A200 + VGS (the two-fund DIY core).
- Maximising franking / Australian income? → lean on VAS or A200 within your mix.
- Want maximum global growth? → weight toward VGS (plus an Aussie core for franking).
- Using Betashares Direct? → A200 trades brokerage-free, which suits regular small buys.
A common journey: start with DHHF for pure simplicity, then graduate to a VAS/A200 + VGS split later if you want more control. Both are completely sound. The single biggest mistake isn’t picking the “wrong” ETF from this list — they’re all good — it’s staying out of the market while you agonise over the perfect ticker. Time in the market beats fine-tuning.
How to buy any of these ETFs
Whichever fund you choose, you buy it through a broker or investing platform with ASX access. One option built by the makers of DHHF and A200 is Betashares Direct — brokerage-free trading on Betashares funds (including DHHF and A200), auto-invest, and access to the Vanguard funds (VAS, VGS, VDHG) too.
Sign up through the link below and you’ll get a $20 bonus when you make a deposit of $50 or more — a free head-start on your first investment.
Get $20 with Betashares Direct →Betashares Direct isn’t your only choice — Stake, Pearler and CMC Invest all give ASX access, and the right platform depends on fees, features and whether you want auto-invest. We compare the main options in our broker comparison, and there’s a full Betashares Direct review if you want the detail before signing up. (We may earn a commission if you join through our link — see the disclosure below.)
Frequently asked questions
What is the best ETF for Australians in 2026?
There’s no single best — it depends on the job. For one-fund simplicity, DHHF (100% growth, 0.19%) and VDHG (90/10, 0.27%) lead. For an Australian core, VAS and A200 both charge 0.07% with high franking. For global exposure, VGS covers ~1,260 developed-market companies at 0.18%. Most people pick one all-in-one fund, or a simple VAS/A200 + VGS combination.
Is one ETF enough for an Australian investor?
Yes, if it’s a diversified all-in-one fund. DHHF or VDHG each hold thousands of shares across Australian and global markets in a single ticker and rebalance automatically, so one can be a complete equity portfolio. Single-market ETFs like VAS (Australia only) or VGS (global only) are building blocks usually combined rather than held alone.
What’s the difference between DHHF and VDHG?
Both are all-in-one diversified ETFs, but DHHF is 100% growth assets (shares only) at 0.19%, while VDHG holds ~90% growth and 10% bonds at 0.27%. DHHF has higher long-run growth potential and a lower fee; VDHG’s bond sleeve gives more stability and a higher income yield. The choice is whether you want any defensive allocation built in.
VAS or A200 for Australian shares?
Very similar — both track around the top 200-300 ASX companies at 0.07% with high franking. VAS (Vanguard) tracks the ASX 300; A200 (Betashares) tracks the Solactive Australia 200 and trades brokerage-free on Betashares Direct. For most investors the difference is negligible; pick based on your platform and preferred index.
How many ETFs should I own?
Often just one or two. A single diversified ETF like DHHF or VDHG is a complete portfolio on its own. A common DIY approach is two funds — an Australian core (VAS or A200) plus a global fund (VGS) — sometimes with emerging markets added. Owning many overlapping ETFs usually adds complexity without improving diversification.
Disclosure & disclaimer: This article contains an affiliate/referral link for Betashares Direct — if you sign up through it, MoneyHack HQ may earn a commission and you receive a $20 bonus on a qualifying deposit (currently $50+), at no extra cost to you. The author personally invests in DHHF. This is general information only and not personal financial or tax advice; it doesn’t consider your objectives or circumstances. ETF fees, yields, franking, holdings and bonus terms change — always read the current PDS and Target Market Determination, confirm live details with the issuer/platform, and consider seeking advice from a licensed financial adviser before investing. Past performance is not indicative of future returns.
Ready to start?
Pick your fund and get invested
One all-in-one fund or a build-your-own core, the hardest part is starting. If you’re buying any of these ETFs, Betashares Direct gets you going with a $20 bonus on a $50+ deposit.
$20 bonus on a $50+ deposit · general information, not advice · read the PDS
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