Top 10 ASX index funds to watch in 2026

ASX index funds hold baskets of Australian shares and aim to mirror the performance of a specific market benchmark, without stock-picking. Most of the funds here track market-cap weighted indices, covering anywhere from the 20 largest ASX stocks to the 300 largest. VanEck Australian Equal Weight ETF ($MVW) takes a different approach, giving every holding the same weight. BetaShares FTSE RAFI Australia 200 ETF ($QOZ) selects and weights companies by measures of fundamental size rather than market capitalisation.

How we built this list: We selected these funds based on their industry or investment category. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in A$. Data updated as of 1 September 2026.

✅ Learn more: Top 9 ethical ETFs in Australia to watch in 2026→

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1. Vanguard Australian Shares Index ETF ($VAS)

Vanguard Australian Shares Index ETF (VAS) share price over the last year: started at A$109.02, ended at A$112.96, a change of +3.6%. Range over the period: high A$114.74, low A$104.44. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $112.96 · Daily: 0.03% · AUM: $26.19B · MER: 0.07%

The S&P/ASX 300 Index covers the 300 largest ASX-listed companies by market capitalisation. Vanguard Australian Shares Index ETF ($VAS) aims to track that index's return before fees, expenses, and tax. The fund holds most of the index's securities, with individual weightings allowed to drift marginally from the benchmark from time to time. It may also hold securities in the process of being added to or removed from the index, to help manage transitions.

Because the index covers 300 companies, $VAS reaches beyond the largest ASX names into mid-cap territory. Holdings are weighted by market cap, so the biggest listed companies carry the most influence over the fund's performance.

2. Ishares Core S&P/Asx 200 ETF ($IOZ)

Ishares Core S&P/Asx 200 ETF (IOZ) share price over the last year: started at A$35.32, ended at A$36.53, a change of +3.4%. Range over the period: high A$37.11, low A$33.86. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $36.53 · Daily: 0.1% · AUM: $9.57B · MER: 0.05%

iShares Core S&P/ASX 200 ETF ($IOZ) aims to track the S&P/ASX 200 Total Return Index, which is designed to measure the performance of the 200 largest securities listed on the ASX. The fund holds the Australian equity securities that make up that index. Its MER is 0.05%.

3. BetaShares Australia 200 ETF ($A200)

BetaShares Australia 200 ETF (A200) share price over the last year: started at A$146.51, ended at A$151.99, a change of +3.7%. Range over the period: high A$154.52, low A$140.90. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $151.99 · Daily: 0.03% · AUM: $11.05B · MER: 0.04%

BetaShares Australia 200 ETF ($A200) is designed to track the Solactive Australia 200 Index, which covers 200 of the largest companies listed on the ASX. Weighting follows free float-adjusted market capitalisation – the portion of shares actually available for public trading – so the biggest companies hold the biggest positions in the portfolio. The fund aims to match that index's return before fees and expenses are factored in.

Because holdings are weighted by market cap, a relatively small group of the largest ASX names tends to carry the most influence over $A200's overall direction. The approach is passive – the portfolio follows the index's composition rather than making active stock selections.

4. State Street SPDR S&P/ASX 200 ETF ($STW)

State Street SPDR S&P/ASX 200 ETF (STW) share price over the last year: started at A$79.00, ended at A$81.39, a change of +3.0%. Range over the period: high A$82.75, low A$75.73. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $81.39 · Daily: 0.04% · AUM: $6.81B · MER: 0.05%

The State Street SPDR S&P/ASX 200 ETF ($STW) aims to match the performance of the S&P/ASX 200 Index before fees and other costs. That index covers 200 of the largest ASX-listed securities, selected by float-adjusted market capitalisation and liquidity.

$STW holds a 0.05% management expense ratio (MER) and $6.81B in assets under management. It provides broad exposure across Australia's large-cap market and is one of the longer-established S&P/ASX 200 ETFs listed on the ASX.

5. VanEck Australian Equal Weight ETF ($MVW)

VanEck Australian Equal Weight ETF (MVW) share price over the last year: started at A$39.00, ended at A$39.37, a change of +0.9%. Range over the period: high A$40.44, low A$36.19. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $39.37 · Daily: 0.6% · AUM: $3.39B · MER: 0.35%

VanEck Australian Equal Weight ETF ($MVW) aims to track a reference index made up of the largest and most liquid ASX-listed companies. The distinction from a market-cap weighted approach is in how the capital is spread: every company in the portfolio carries the same weight, rather than having the largest companies absorb the most. That construction is designed to build diversification across both individual stocks and sectors more evenly than a standard cap-weighted structure would allow.

6. Vanguard MSCI Australian Small Companies Index ETF ($VSO)

Vanguard MSCI Australian Small Companies Index ETF (VSO) share price over the last year: started at A$73.78, ended at A$75.50, a change of +2.3%. Range over the period: high A$81.16, low A$67.52. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $75.50 · Daily: 1.0% · AUM: $1.14B · MER: 0.30%

Vanguard MSCI Australian Small Companies Index ETF ($VSO) aims to track the MSCI Australian Shares Small Cap Index, which covers the smaller end of the Australian sharemarket. Where many index funds gravitate toward the 200 or 300 largest ASX companies, $VSO is designed to follow the companies that sit below that group.

The fund holds or is exposed to most of the securities in the index, with individual security weightings allowed to vary marginally from time to time. Its MER is 0.30%.

7. BetaShares Australian Ex-20 Portfolio Dvrsfr ETF ($EX20)

BetaShares Australian Ex-20 Portfolio Dvrsfr ETF (EX20) share price over the last year: started at A$23.58, ended at A$23.18, a change of −1.7%. Range over the period: high A$24.88, low A$20.69. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $23.18 · Daily: 0.09% · AUM: $698.5M · MER: 0.25%

BetaShares Australian Ex-20 Portfolio Diversifier ETF ($EX20) aims to track the Solactive Australia ex 20 Index, which is designed to cover approximately 180 of the largest ASX-listed securities. The 20 biggest companies by free float-adjusted market capitalisation are excluded before the index constituents are determined.

The effect is a portfolio that holds Australia's large-cap market, but without the country's 20 biggest listed companies by market size. The index sits below that top tier, drawing from a wide cross-section of Australia's listed companies. $EX20 tracks this on a passive basis, aiming to replicate the index's performance before fees and expenses.

8. iShares S&P/ASX 20 ETF ($ILC)

iShares S&P/ASX 20 ETF (ILC) share price over the last year: started at A$32.98, ended at A$35.23, a change of +6.8%. Range over the period: high A$36.34, low A$31.27. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $35.23 · Daily: -0.1% · AUM: $805.2M · MER: 0.24%

iShares S&P/ASX 20 ETF ($ILC) aims to track the S&P/ASX 20 Total Return Index, which covers the 20 largest securities listed on the ASX. That's a deliberately narrow slice of the Australian market – a concentrated look at the country's biggest listed companies.

$ILC holds the Australian equity securities that make up the index, seeking to match its performance before fees and expenses. The MER is 0.24%.

9. State Street SPDR S&P/ASX 50 ETF ($SFY)

State Street SPDR S&P/ASX 50 ETF (SFY) share price over the last year: started at A$76.57, ended at A$79.24, a change of +3.5%. Range over the period: high A$80.90, low A$72.78. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $79.24 · Daily: 0.0% · AUM: $732.9M · MER: 0.20%

The State Street SPDR S&P/ASX 50 ETF ($SFY) aims to match the performance of the S&P/ASX 50 Index before fees and costs. That index covers 50 of the largest and most liquid securities listed on the ASX, selected and weighted by float-adjusted market capitalisation.

Float-adjusted weighting means only shares available to public investors count toward each company's weight, not those held by insiders or other restricted parties. The result is a concentrated slice of the Australian sharemarket – heavily skewed toward the companies that dominate the ASX by size. Because the index holds just 50 names, individual holdings carry more weight than they would in a broader benchmark.

10. Betashares FTSE Rafi Australia 200 ETF ($QOZ)

Betashares FTSE Rafi Australia 200 ETF (QOZ) share price over the last year: started at A$17.60, ended at A$19.67, a change of +11.8%. Range over the period: high A$20.01, low A$17.51. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $19.67 · Daily: -0.05% · AUM: $1.41B · MER: 0.40%

BetaShares FTSE RAFI Australia 200 ETF ($QOZ) takes a different route to building an Australian share portfolio. Instead of weighting companies by market capitalisation, the fund aims to track the FTSE RAFI Australia 200 Index, which selects and weights its 200 holdings by measures of fundamental size – things like sales, cash flow, dividends and book value.

That construction means the portfolio can look quite different from a standard market-cap index, where the largest companies by market capitalisation dominate the weightings. The fund uses full replication to pursue its objective, holding the index constituents directly. Its MER is 0.40%.

➡️ Top 10 Vanguard ETFs in Australia to watch in 2026→

Common questions

How do I invest in ASX index funds in Australia?

All the funds in this list are ASX-listed ETFs, so you can buy and sell units through any share trading platform that offers ASX access – the same way you'd buy an individual share. You search the ticker, place an order for the number of units you want, and the trade settles through the ASX's standard clearing system. Minimum investment amounts are set by the platform, not the fund.

What are the key risks of ASX index funds?

The main risk is market risk – if the Australian sharemarket falls broadly, these funds fall with it, because they're designed to track the market rather than sidestep it. Market-cap weighted indexes also concentrate exposure in the largest companies by size, so big moves in a few major stocks can have an outsized effect. Funds tracking a narrower slice of the market – such as the top 20 or top 50 stocks – carry that concentration further still. $VSO, which targets small-cap companies, carries different risks: smaller companies can be less liquid and more sensitive to individual business outcomes.

How does index weighting affect what the fund holds?

Most funds in this list use market-cap weighting, where larger companies by market capitalisation get a bigger allocation. $MVW takes an equal-weight approach, giving each holding roughly the same slice of the portfolio regardless of company size. $QOZ weights by fundamental measures of company size rather than market value. Each method produces a meaningfully different portfolio, even when drawing from the same pool of large ASX stocks.

Does it matter whether a fund tracks 20 stocks or 300?

The narrower the index, the more the fund's returns hinge on a small group of very large companies. $ILC tracks just 20 names; $VAS tracks 300. Funds covering 50 or 200 stocks sit at different points on that spectrum. $EX20 takes a different angle, deliberately excluding the 20 largest ASX companies to give more weight to the next tier down.

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

Stake Desk

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This article combines AI and human review from our analysts to bring you accurate, informative investing content at speed. For questions or suggestions, contact stakedesk@stake.com.au.