Top 7 ASX ETFs Aussie investors are buying during market sell-off

Data from Stake reveals the ASX ETFs that investors are buying most during this current market volatility.

ETF spelt out with a piggybank.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An increasing number of Australian ASX investors are choosing to invest in stocks via exchange-traded funds (ETFs).

Not only do they get great diversification in one trade, but ETFs are also an easy way to buy international shares.

Indeed, many ETF providers have reported a strong trend in investors buying ETFs with exposure to US shares.

This is due to the outperformance of US shares over the S&P/ASX 200 Index (ASX: XJO) over the past two years.

In 2024, investors in the popular iShares Core S&P 500 AUD ETF (ASX: IVV) enjoyed a total return (including dividends) of 37%.

That compares to 11.5% for the ASX 200.

But I digress.

There is now $255.3 billion invested in ASX exchange-traded funds, according to BetaShares.

The provider's latest data shows ETF investment grew by 34.8% — or $66 billion — in the 12 months to 28 February.

So, it's not surprising that many Aussie investors are proactively buying the dip during the current market volatility and are targeting ETFs.

But which ones?

Well, I'm so glad you asked.

Investors buying the dip bought these 7 ASX ETFs

New data from online trading platform Stake gives us a look at which ETFs have been most popular during the market sell-off.

The following table shows the seven most traded ETFs on the Stake platform on Monday.

That was when we saw the biggest market dip of the week, with the ASX 200 falling 4.23%. 

As you can see, the buy/sell ratios for each ETF lean strongly on the buy side.

ASX ETFBuy %Sell %
iShares Core S&P 500 ETF (ASX: IVV)8812
Vanguard Australian Shares Index ETF (ASX: VAS)8713
Betashares Nasdaq 100 ETF (ASX: NDQ)8218
Vanguard MSCI Index International Shares ETF (ASX: VGS)8812
BetaShares Diversified All Growth ETF (ASX: DHHF)9010
Vanguard Diversified High Growth Index ETF (ASX: VDHG)8813
BetaShares Australia 200 ETF (ASX: A200)8614

Note: Rounding will mean some buy/sell ratios do not add up to 100%

Stake's markets analyst Samy Sriram said Aussie investors buying the dip on Monday targeted ETFs more than individual shares.

Sriram said:

ETFs dominated trading activity, although one particular callout is the Vanguard Msci Index International Shares ETF which has seen a big uptick in buys week over week since February.

In the last week alone, VGS saw a 52% increase in buys, suggesting that investors are adding more exposure to international stocks and shifting away from being overly concentrated in the U.S. market. 

The VGS ETF seeks to track the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index.

The three biggest benefits of the VGS ETF are geographical diversification, stock diversification, and a bias toward large-cap stocks.

The VGS ETF holds 1,325 stocks from developed nations.

These include the US and some in Europe, the Pacific, the Middle East, and other parts of the world. (US shares dominate the portfolio at 74%).

The ETF focuses on large businesses with broad, global earnings bases. About 80% of the ASX VGS' holdings are large-caps.

This ASX ETF is not hedged, which means it is exposed to currency changes.

Find out which individual ASX stocks Aussie investors targeted last week.

Motley Fool contributor Bronwyn Allen has positions in Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF 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.

More on ETFs

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
ETFs

Looking for diversified exposure to Nvidia shares after its result? Buy this ASX ETF

Nvidia delivered another impressive earnings result this week.

Read more »

ETF with different images around it on top of a tablet.
ETFs

I think it's a great time to invest in this top ASX ETF

This fund offers the potential for strong returns, in my opinion.

Read more »

Woman calculating dividends on calculator and working on a laptop.
ETFs

$10,000 invested in VDHG ETF a year ago is now worth…

This exchange-traded fund provides more stock diversification than you could imagine.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

I think these 2 ASX ETFs are unmissable buys in June

These funds offer everything I’m looking for.

Read more »

A girl lies on her bed in her room while using laptop and listening to headphones.
ETFs

Narrowing it down: 2 ASX ETFs with a niche focus

These two funds offer great exposure to two emerging sectors. 

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
ETFs

2 top ASX ETFs to buy for passive income

Let's see what sort of yields these funds offer income investors.

Read more »

Woman with hands under a holographic globe with green related icons in the background.
ETFs

3 reasons why this Vanguard ETF is a top buy for diversification

I think this fund offers a lot of the diversification investors may need.

Read more »

A businessman hugs his computer and smiles.
ETFs

Why these ASX ETFs could be top buy and hold forever picks

Let's see why these funds could be great options for investors to buy and hold.

Read more »