Many investors might not be aware that there are roughly 390 ASX ETFs available.
These range from broad index tracking funds, to niche thematic funds.
What's equally as important to understand, is not every fund is successful, and it's not uncommon that ASX ETFs actually have to shut down entirely.
Running an ASX ETF involves ongoing costs such as index licensing fees, market-making and trading costs, administration, compliance, and regulatory reporting.
Investors cover some of these costs in the form of management fees.
These costs exist regardless of how much money is invested in the fund and are largely fixed for the issuer.
Because of this, an ASX ETF could be forced to shut down if it isn't attracting enough investors to be worth running.
If a fund has low money invested in it or very little trading activity, the fees collected may not cover these costs.
A recent report from Vanguard showcases just how hard it can actually be for a fund to have long term success.
Over the last 15 years, we've seen:
All of these impacted international markets.
According to Vanguard, over that period, Australian investors had access to just over 1,000 multi-asset funds.
Over half have closed or ceased reporting performance data.
Vanguard said there are approximately 200 funds that have at least a 15-year track record as at 30 September 2025.
What does this tell us? To have long term success is easier said than done.
While it's important to note past performance doesn't guarantee future returns, there are ASX ETFs that have stood the test of time.
The first, is the iShares S&P 500 ETF (ASX: IVV).
As the name suggests, it invests in the performance of the S&P 500 Index which is the largest US companies by market capitalisation.
This includes global powerhouses like Microsoft Corp (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Nvidia Corp (NASDAQ: NVDA).
It was first listed in 2008, and is up 650% total in that span.
Over the last 10 years, it has provided annual returns of roughly 15%.
Another fund that has provided long term success is Vanguard Australian Shares Index ETF (ASX: VAS).
The fund tracks the return of the S&P/ASX 300 index – Australia's largest 300 companies.
It is actually the largest ASX ETF by market cap.
Recent data (October 2025) shows it has a market cap of more than $22 billion.
Historically, dating back to its initial inception in 2009, it has offered returns of roughly 9% per annum.
The post The ASX ETFs that have stood the test of time appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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