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Best and worst performing ETFs revealed

Technology ETFs were among the best-performing, while renewable and clean energy stocks were the worst.

ETFs and investing
The top and bottom ETFs have been revealed, based on performance. (Source: Getty)

Exchange traded funds (ETFs) have been increasing in popularity among Aussies as a more cost-effective and easier way of investing.

There are now more than 200 ETFs on the ASX to invest in, covering a range of asset classes and specific sectors.

Stockspot’s latest ETF Report found technology ETFs continued to be the best-performing ETFs, with one providing investors a massive 56.1 per cent return on investment in the past year.

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Uranium ETFs have also increased in popularity, as uranium reaches its highest level since 2011. One ETF rose nearly 50 per cent in the past year alone.

On the flipside, renewable energy ETFs have been among the worst performers over the past year.

“Renewable and clean-energy stocks have faced headwinds of rising interest rates, which have increased borrowing costs and capital-expenditure outlays,” Stockspot CEO and founder Chris Brycki said.

“ETFs tracking particular sectors like property and infrastructure have also performed poorly in the face of higher interest rates.”

5 best-performing ETFs

  1. Global X FANG+ ETF (ASX: FANG) - 56.1 per cent return

  2. Global X Semiconductor ETF (ASX: SEMI) - 55.6 per cent return

  3. Betashares Global Uranium ETF (ASX: URNM) - 47.9 per cent return

  4. Global X EURO STOXX 50 ETF (ASX: ESTX) - 40.5 per cent return

  5. VanEck Global Listed Private Equity ETF (ASX: GPEQ) - 39.4 per cent return

5 worst-performing ETFs

  1. Global X Physical Palladium (ASX: ETPMPD) - down 41.7 per cent

  2. Betashares Solar ETF (ASX: TANN) - down 25.2 per cent

  3. Global X Hydrogen ETF (ASX: HGEN) - down 20.6 per cent

  4. VanEck Global Clean Energy ETF (ASX: CLNE) - down 17.6 per cent

  5. Global X Green Metal Miners ETF (ASX: GMTL) - down 16.9 per cent

Cash ETFs on the rise

Cash ETFs have been particularly popular among investors this year, driven by higher interest rates and investors looking for a safe place to put their cash.

Cash ETFs, which invest in interest-bearing instruments like bank and term deposits, have attracted $1.6 billion in investments over the past year. These ETFs pay their distributions (i.e. interest) monthly.

“We’ve found that investors are choosing these products for their great returns and because they simply don’t have the same hassle and conditions of a high-interest bank account,” Brycki said.

“In our 10 years of researching the more than 250 ETFs on the ASX and Cboe Australia, this is the first time cash ETFs have received so much interest from investors and they are proving to be cash cows.”

If you’re interested in learning how to invest in an ETF, here’s our guide to getting started.

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