Top 6 Australian Share ETFs: VAS, A200, MVW & VHY Reviewed (2025)

Choosing the right Australian share ETF can feel overwhelming. With so many options available on the ASX, how do you know which one is the right fit for your portfolio?

This guide will break down the six most popular Australian share ETFs, exploring their different strategies, holdings, fees, and performance to help you make a more informed investment decision.

Disclaimer: This information is for educational purposes only and not financial advice. Always do your own research or speak to a licensed financial advisor before making any investment decisions.

1. VAS (Vanguard Australian Shares Index ETF) – The Market Leader

If there's one ETF that dominates the Australian market, it's VAS. It is Australia's largest and most traded ETF, with over $20 billion in assets under management as of July 2025.

What it tracks:

VAS tracks the S&P/ASX 300 index, which means it invests in the top 300 Australian companies by market capitalisation. This provides broad exposure across large, mid, and small-cap Australian companies, capturing over 82% of the entire Australian share market's value.

The Downside (Concentration Risk):

Because the Australian market is heavily weighted towards its largest companies, VAS reflects this. As of June 2025, the top 10 holdings make up a staggering 46.46% of the portfolio, and the top two sectors—financials and materials—account for over half the fund.

Fees & Income:

VAS has an incredibly low annual management fee of just 0.07%. It pays distributions quarterly and typically delivers a cash yield of around 4-5%. When you include franking credits, the grossed-up yield can increase to approximately 5-6% per annum.

Best for:

Investors looking for a simple, low-cost way to build the core of their portfolio with broad exposure to the Australian share market.

2, 3 & 4. A200, IOZ & STW – The ASX 200 Challengers

Next, we have a trio of ETFs that are very similar in structure and purpose:

• A200 (BetaShares Australia 200 ETF)
• IOZ (iShares Core S&P/ASX 200 ETF)
• STW (SPDR S&P/ASX 200 Fund)

These three ETFs are all managed by well-established, reputable providers and all track indices that cover the top 200 Australian companies. This means they have nearly identical holdings, sector allocations, and performance over time. For most investors, they are functionally interchangeable.

The main difference compared to VAS is that they exclude the next 100 mid and small-cap companies. However, since those extra 100 companies make up less than 3% of the total market, the performance of ASX 200 and ASX 300 ETFs tends to be very similar. All three pay distributions quarterly and offer ultra-low fees thanks to their large scale.

5. MVW (VanEck Australian Equal Weight ETF) – The Diversifier

This ETF from VanEck takes a completely different approach. Instead of weighting companies by their size, MVW uses an equal weighting methodology.

How it works:

MVW tracks an index that generally selects from the top 100-120 ASX-listed stocks. At each quarterly rebalance, the weight of each company is reset to be equal (approximately 1.39% of the portfolio). This enforces a "buy low, sell high" discipline by trimming the winners and buying the underperformers.

The Benefit (Diversification):

This equal weighting approach reduces the concentration risk found in market-cap ETFs. Instead of being heavily tilted towards banks and miners, MVW spreads its weight more evenly across sectors like healthcare, technology, and industrials.

Performance:

MVW has shown a noticeable edge during periods when the broader market is recovering, as smaller and mid-cap companies tend to outperform during these times. However, it can lag when market gains are driven primarily by a few heavyweight stocks.

Fees & Income:

The management fee is a competitive 0.35%. It pays distributions twice a year, with a cash yield typically in the low 4% range.

Best for:

Investors seeking greater diversification and less concentration in the largest ASX stocks.

6. VHY (Vanguard Australian Shares High Yield ETF) – The Income Play

Last but not least, VHY is an ETF that stands out for its specific focus on generating income.

How it works:

VHY tracks an index that selects companies based on forecast dividend yields. It aims to include companies expected to deliver sustainable, above-average dividends backed by solid fundamentals. It currently holds 67 stocks, but Australian Real Estate Investment Trusts (A-REITs) are excluded.

Concentration Risk:

This focus on high dividend yields gives VHY a strong bias towards banks, telcos, and energy stocks. Financials and materials make up over 60% of the portfolio, and the top 10 holdings account for around 65%, giving it arguably the highest concentration risk of all the ETFs covered.

Fees & Income:

It has a low management fee of 0.25%. Thanks to its income-focused strategy, it typically delivers a higher dividend return than the other ETFs. In the 12 months to 31st of May 2025, its cash dividend yield reached an impressive 8.37%. When franking credits are included, the grossed-up yield is even higher.

Best for:

Investors who prioritise higher dividend returns, especially retirees or those building an income-focused portfolio.