Best ASX ETFs to Buy Now

Investors in ASX stocks may benefit from diversification in these ETFs, which are suited to different needs.

The Betashares Australian Quality ETF (ASX: AQLT)

gives investors exposure to 40 Australian companies which are picked based on 3 quality factors which are high return on equity, low debt levels and stable earnings. The expense ratio is 0.35% per annum and follows the Solactive Australia Quality Select Index before fees. From its launch in April 2022, AQLT has given a annualised return of 14.49% which is higher than the S&P/ASX 200 Index return of 9.42% for the same time. The fund pays distributions two times a year, with a 12 month gross yield of 4.1% and 61.4% franking as of August 2025. This makes it appealing for investors who want growth plus passive income.

AQLT invests across many sectors but the biggest weights are in financials, consumer discretionary and materials. Big names in the holdings are Wesfarmers, BHP, Telstra and the large Aussie banks, together with CSL and Macquarie Group. In the last one year till September 2025 it went up by 15.22% and because of its quality screen and different sector weights compared to regular benchmarks, AQLT can give long term outperformance and diversification. 

The Betashares Australian Financials Sector ETF (ASX: QFN)

gives investors a focused exposure to Australia’s biggest financial players. It mainly includes the big four banks along with large insurance companies but keeps out the Real Estate Investment Trusts (REITs). The ETF has an expense ratio of 0.34% per annum and follows the Solactive Australia Financials ex REITs Sector Index. QFN has been around since December 2010 and since then it has given an annualised return of 10.18%. In the last one year till September 2025 it went up by 10.46%. This shows why many investors look at it as an option for both income and growth.

Most of QFN’s money is in diversified banks with smaller parts in capital markets and insurance companies too. The biggest holdings are Commonwealth Bank, Westpac, National Australia Bank , ANZ  and Macquarie Group. It pays distributions two times in a year and the last 12 month gross distribution yield was 3.6% with franking of 75.9% which makes it appealing for investors.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ)

gives investors access to the top 200 companies listed on the Australian stock exchange. It has a very low expense ratio of 0.05% p.a and aims to follow the S&P/ASX 200 Index before fees and costs. This makes it a straight forward way to invest in the biggest names. IOZ started back in December 2010 and since then has given annualised returns of 8.71% and in the last one year till September 2025 it has gone up by 6.83%.

IOZ pays income every quarter and right now the trailing 12 month yield is around 3.33%. Its portfolio is spread across all the key sectors of the economy with main holdings like Commonwealth Bank, BHP, Westpac, NAB and CSL. IOZ offers scale, liquidity and low cost which is why many investors use it as a base for their Australian equity portfolio.

(Source: Company Announcements)