Bargain hunting: Which ASX ETFs have fallen the most in 2025?

Looking for ETFs that could be undervalued after a rocky 2025? Here are three options to consider.

ETF in blue with person's hand in the direction of green and red bars on graph.

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

ASX ETFs give investors the opportunity to gain exposure to multiple holdings in just one trade. 

This diversification can help spread risk. However, ETFs are still not immune to a market downturn, as we've experienced in 2025. 

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 4.66% since the beginning of 2025. 

The S&P 500 Index (SP: .INX) is down almost 10% and the NASDAQ-100 Index (NASDAQ: NDX) is down more than 12%. 

While it's impossible to know if we have hit the bottom of this economic downturn, it does mean quality ETFs that track these markets have also fallen significantly. 

Here at The Motley Fool we are less about trying to perfectly predict the beginning and end of a bear market and more about investing in quality holdings with a long term outlook. 

The Motley Fool's Chief Investment Officer in Australia Scott Phillips has repeatedly emphasised that over 120 years, The ASX and US market have never failed to regain, then surpass, a previous high after an economic crisis. 

So if you are looking long-term, here are three ASX ETFs that could be undervalued after a down start to the year. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ETF is one of the most traded in Australia and includes companies from around 23 different countries including the U.S, Japan, U.K, Canada, France, and Switzerland.

It actively excludes Australia, which could benefit investors with high exposure to just the Australian market. 

It currently includes more than 1,300 holdings. 

Its largest holdings are largely US focussed and include Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Microsoft (NASDAQ: MSFT). 

So far this year it has fallen 8.62%. 

Created with Highcharts 11.4.3Vanguard Msci Index International Shares ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

However, it has provided steady returns for long term holders, up 66.23% in the last five years. 

That means hypothetically, $10,000 invested in VGS five years ago would be worth $16,623.00. 

This doesn't take into account dividends or reinvested earnings. 

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This ETF could appeal to investors focussed on impact investing which is an investment strategy on the rise in Australia. 

It involves focussing on advancing particular social or ethical causes while still being able to generate financial returns. 

According to the fund, ETHI aims to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as "Climate Leaders". 

These stocks have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

Since the start of the year, the fund is down 9.54% but remains up 42.16% over the last 5 years. 

Created with Highcharts 11.4.3BetaShares Global Sustainability Leaders ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

BetaShares NASDAQ 100 ETF (ASX: NDQ)

For investors looking for exposure to US markets after a down start to the year, NDQ could be worth considering. 

The BetaShares NASDAQ 100 ETF tracks the performance of the 100 largest non-financial companies listed on the Nasdaq market. 

Like VGS, its three largest holdings are Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Microsoft (NASDAQ: MSFT). 

However, these companies represent a much larger portion of the fund. This means holders will be more exposed to rises and falls from these blue-chip stocks.

It has fallen 14.35% since the start of the year. However has brought investors strong long term growth, up 81.48% over the last 5 years. 

Created with Highcharts 11.4.3BetaShares Nasdaq 100 ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Should you invest $1,000 in Macmahon Holdings Limited right now?

Before you buy Macmahon Holdings Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Macmahon Holdings Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Bell has positions in BetaShares Global Sustainability Leaders ETF and Vanguard Msci Index International Shares ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. 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 positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and Vanguard Msci Index International Shares 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 man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
ETFs

Meet these two new ASX ETFs

Two new ETFs are set to join the ASX.

Read more »

Happy young couple saving money in piggy bank.
ETFs

3 ASX ETFs to buy for lifelong income

These funds could provide passive income investors with regular paychecks.

Read more »

A woman sits at her desk thinking. She is surrounded by projections of world maps on various screens with data appearing below them.
ETFs

Here's 1 ASX ETF that I'd happily make my entire portfolio

This fund offers both diversification and growth.

Read more »

a business person checks his mobile phone outside a Wall Street office with an American flag and other business people in the background.
ETFs

How to choose a US focused ASX ETF for the current market environment

Here are 5 US focused ASX ETFs to consider.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
ETFs

Where I'd invest $5,000 in ASX ETFs after the selloff

Let's see which funds could be top picks for an investment right now.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
ETFs

10 ASX ETFs to buy after the Easter break

There's something for everyone with these funds. Let's take a look at them.

Read more »

Woman and man calculating a dividend yield.
ETFs

Trade war heats up: Which ASX ETFs are most exposed to China?

These China-focused funds could be in the firing line.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
ETFs

3 excellent ASX ETFs to buy before it's too late

Let's see what these top funds offer Aussie investors.

Read more »