The Top 5 Performing ASX ETFs of the Financial Year!

Order Kerni Whoalbury and a waddery woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on a wondery country, acknowledging the elders, the ancestors and the next generation coming through as this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow.

investing journeys. Today on the show, we wanted to do a wrap of the five best performing asx ETFs from the last financial year. I mean, we use a stretch. I really wanted to do that this. Jessica Ricci was like, I don't know about that content, and I was like, I really want to do the content, and I feel

like there is might be niche. But there is a group of people who really like this content too, because last time we did one last year it kind of blew up in my DMS and people like, oh my gosh, thank you so much for talking about these or thanks so much for having more honest, open conversations about ETF's an actual product. And I'm excited to do this today.

Before we get into it, I know we've said it a million time, but in case this is the first episode you've ever listened to, and ETF is a basket of shares, is how Victoria ax refreshed. She's a little basket. Might be Wiker that's in at the moment, it might be kin, it might be a picnic basket, but it is a basket of lots of different assets that give you instant diversification. But to go to your point, jess that you just made if this is your first Cheese

on the Money episode, fantastic, welcome to our family. We are so excited to have you. But quick fact check here. If you're not on your investing journey yet, or maybe investing feels completely overwhelming, this episode is definitely going to make that worse. So I would go back and listen to one of our two investing series that will give you the basics of absolutely everything you know, so when

you listen to this, it doesn't sound overwhelming. And then for this She's on the Money community that are absolutely across this one. We're really excited to do this. But two, don't feel overwhelmed. If you're like, oh, she's talking about stuff I've never heard. We are just going to make

it common knowledge. We are going to talk about these things more often on the She's on the Money pod this year and next year, because I just think there's lots of change going on at the moment, and it makes it so much easier for us to be able to openly and honestly talk about product and just have a good band about what it means and how it works. And I think that these types of conversations are quite constructive.

When you guys are picking assets that are going to go into your portfolio in saying that before I really get into the crux of the five ETFs that I'm going to present to you today, Miss Jesso Ricci, in true compliance form, Jessica, past performance is not a reliable predictor of future performance, and you should seek personal financial advice should you wish to make a decision based upon any information that you hear today. Yeah, and this is something we touched on last year, which I think is

really worth saying. Just because it was the top performing product doesn't mean it will be again. Well, it doesn't mean we're again, but it also doesn't mean it's the right product for you. I think as we go through these people are going to see a bit of a common theme and it's something that may not align with

a lot of people's values. And you know, we spoke about this in an earlier investing series, and investing is such a personal thing that the performance of the fund is only one element that people would be considering and there are so many other factors. So this definitely isn't us saying these are the five things you could invest in. It's just a really fun review of the year that was.

It's also really interesting because the world has changed quite significantly since last year when we talked about ETFs, and in June we entered what's called a bear market, or a bear market is when officially the shared market drops by a minimum of twenty percent from the last twelve months all time high. And I feel like coming out of COVID when it's not really out of COVID, but you guys know what I mean. As we're coming out of COVID and going back to like kind of business

as usual. There were a number of different industries that like smashed it. Like remember when we did that ETF episode jets, Like every single ETF that we presented had like a really really high return, and I was like, oh my gosh, and this and this, and there was like some tech companies and some biopharmaceutical companies, and it

was just really interesting. Now having gone through all of that and having experienced what we've experienced, the performance is not nearly as high as it was, But I think it's really interesting to kind of listen to episodes like this, and if you're interested, maybe go back and listen to that episode and see what the market was like twelve

months ago. In the types of conversations we were having because politically, economically, and just literally the world is a different place today and the types of ETFs that performed really well in the last financial year are very different to the ones that performed well in the financial year before that, and there's really good reasons for that, and I guess we'll get into the nitty gritty and the

conversation around that as we go through it. Jess. Yeah, and last thing to throw in there before we jump into the list itself is these were the best performing ASX ETFs, so they had to be listed on the Australian Securities Exchange to be considered for this list. We'll get questions, I was going to say, looking into it absolutely to give a little bit of what would you call it here? Just housekeeping housekeeping here these are all

ASX listed shares and it is post management and performance fees. Obviously, if you are on a different platform, there might be platform fees that you personally need to take into consideration, but this is what the ETF reported directly post all of their fees taken out, So I think that's a great place to start, Jess. And as always, we're clearly going to go five to one because I'm not going to give you the biggest performing ETF upfront, am I. Now, I gotta work for it. No, you've got to work

for it. You gotta wait for the break. You've gotta go through our advertising because that's how I pay Jess. Guys, that's important. I lack money. Let's kick things off with number five VD. What have you got?

walls that would like tick over the performance. It's the ticker because obviously they weren't going to write Beta shares Global Agricultural Company ATF what they were going to do. And I really like this ticker code. It's food that's clever. Yes, so funny. Anyway, So the first fun that we're looking at today is basically exactly what it says in the title.

It is a global agricultural company is ETF. So as we said, this is an ASX listed ETF, but that doesn't mean it's only got Australian shares in it, right. Food is an agricultural based ETF that tracks a whole heap of food producing companies from around the world, so you might have heard of a whole heap of the companies in there. You've got Tyson Foods and Archer Daniels Midland and Deer and Co. And Food because it's way more fun to just refer to it as it's ticker code,

because it's got a good one. Gave investors a total of three point five percent return over the twenty twenty two financial year, which honestly looks pretty good if you

compare it to our top performing ASX shares. Really interesting the difference between the bottom performing at the top five versus last year made it into the top five jests, yeah, with only three point five percent last year's bottom five, like number five was trying to say, it came in at thirty nine point three two exactly right like last year was absolutely insane and I think, and like I can't remember because it was a while ago. I would have been like, guys, this is so irregular, like it's

not common. But you've got to remember that a lot of the shares that were on that top list actually were shares that had performed insanely well over COVID, and COVID was kind of like an outlier for what economic performance actually looked like. So people were like, oh my gosh, now we're going to get on it. Like remember how Zoom had that like massive influx of users, because it just made sense. Yeah, you don't often see such crazy performance in the share market, but it was obviously quite

responsive to the times we were going through. And now we've kind of come off a little bit. We're in a bear market. You know. There is talk from a lot of politicians and a lot of economists that we are on the way to some form of session. So obviously the market's going to have pulled back a little bit and be a little bit tighter with their purse string. So performance this year isn't looking nearly as sexy as

it was last year. Yeah. Well, as someone whose portfolio is largely in the red, it's kind of like any kind of positive return is a great thing, so I can see why it's scraping in at three point five Does this make you like when we have this conversation and I say, Jess, when we're talking about the top five ETFs and number five is at three point five percent, does that make you feel slightly better about looking at your own portfolio and going, Okay, well, you know that

isn't as good compared to last year. Does that give you more context or I guess confidence? Yeah? I think so. I think looking at this list, the numbers seem a lot more reasonable compared to last year's, which was you know, entry point of almost forty percents and I'm to almost ninety I think it was. It definitely makes it seem

a lot smarter. I think I'm not feeling too anxious because we've done so much groundwork this year about understanding the cycles of the market and understanding that you know, you're not always going to be doing super well and that's totally fine. It' about time in the market, not timing the market. Yes, queen, you're like, maybe me, you just spit out all the stuff I say, and I love it. Yeah, I do. I sound exactly. I love it. I love it. I would wear that outfit though, So

that's good. It's cute. We almost matched sometimes, if that's okay, all right, back on track, Victoria, what came in at number four? Okay, so number four is the Van Neck Australian Resources ETF not as sexy of a ticker code this time, I do apologize. The ticker code is mv R, and I can't even think of a cute acronym or something that suits that, so we just move on from that. Pick ticer because like food makes sense global Agriculture. MVR

isn't even an abbreviation of the title. Yeah, usually it is an abbreviation of the title, but sometimes if an abbreviation already exists, they will just pick something that makes sense for that fund. And the V I'm assuming stance for Van Neck and it might be like something vanic Resources. I don't actually know off the top of my head what that particular one is. But often because there are so many big companies on the list, they double krinom might no, no, no, they won't double up. They will

make you pick a different ticker code. So like you know, if you're going to go with like Rio Tinto. Right, they've already got Rio. So if Rio Underwear wanted to list on the ASX, they would have to come up with a different ticker code. It's like Instagram names when all the good ones are taken and you have to do it like a dot or an understor Right, there's an underscore in my name because there's a woman in the US called Victoria Devine and she's like a pr

person and woman. You've got all of my usernames. Cut this out, rude. I couldn't even get the TikTok name. When TikTok started to become a thing, I was like, this is my time to shine. I'm going to get Victoria Devine. I did not. I still had to use my underscore. She was too speedy. Tell me more speedy about MVR. This fund holds ASX shares. So it's Australian only, which I mean is probably pretty obvious given it's called the Australian Resources ETF, but only in the resources sector.

So when we talk about the resources sector, that's like energy and fuel, and we are talking about oil and petrol and petroleum production and stuff like that. So this one's a little bit debated because there are obviously going to be people on either side of the fence, people who are like yes, investing resources, and then people who are like, no, it's unethical, Like that's not aligned to my values. This episode is not about your values. This

is just about hey, here are the top five performing ones. Obviously, you guys know that I'm probably more aligned to an ethical portfolio because that's just where my values sit. But honestly, you do you boo. Australia is known for its resources production and export. And as an Australian who is also an investor and somebody who I would say knows the shere market pretty well, a lot of our performance does

come from resources. Because you think about our main exports, like, we aren't the type of country who you know exports massive massive amounts of corn or like do you know what I mean? Like you know New Zealand to the export shape. Great, they don't have as many resources as us, but with the amount of land we have, it kind of makes sense that the world relies on us for that. So you can't just cut that sector out comempletely anyway.

Complete side note, they hold some pretty big names. So I mentioned Rio before that's a good place to start. Rio is in that portfolio. Then there's BHP, which everybody would know, and Woodside Energy Group, which is again a really popular name. So essentially the Vanick Australian Resources ETF managed to give a total return Jessica of a very exciting five percent over the twenty twenty two financial year

for its investors. Five percent. Given I know it's only a small portion of portfolio, but given how freaking expensive petrol has been this rude, right, and given that BHP sits in that portfolio, I'm really surprised that it's only five percent. Yeah, I'm surprised at the amount of return. I'm not surprised that they've made this list because I was like, okay, cool, they're absolutely turning a profit. But in saying that, a lot of companies are not just

exporting their importing. So as we know, BEHP are absolutely an importer as well as an exporter, and that means that they are having to pay the fuel prices that the UAE are setting for us, So not every single discount actually gets past to us because sometimes it has to be absorbed into the cost. So I think that that makes a lot of sense but at the same time it's kind of a joke. I don't like it.

that makes me really mad. And then er shareholders blasted Rio recently over board exodus, so basically their entire board just yeat it out of there, And James Packer basically said that the resignation of all three independent directors under pressure from Rio reeks of something terribly wrong. So there's a lot of skepticism in addition to the fact that they are in the resources sector, so people already looking at them as like, what are you doing for the environment?

How does that work? And yeah, it's just a bit of a spicy topic. And historically their share prices have been very ebby and very flowy. Like I remember back in like twenty fifteen, twenty sixteen, there was like a fifty percent drop in their share prices. When I was talking to clients, like obviously portfolios I hadn't written, but talking to clients about what they held, and it's always just been a little bit controversial, a little bit topical

from my perspective. I just think that resources, I understand it, I respect that it exists. I respect that it really holds up a lot of our economy. So we can't just you know, evict it from the country and say, oh, we shouldn't do that. But what can we do to be more respectful? What can we do to help climate change? What can we do to you know, rebuild the Great

Barrier reef? And there are actually a number of different resource companies that if you're interested in being exposed to resources, we only want to be exposed to resources who are also trying to help the community. I think that's a really good space to have a conversation in as well. And I won't get into it now, but yeah, Reo, it wouldn't be one of them, all right, I reckon, We've got time for one more before we go to a quick break. What is sitting at number three? All right?

Less spicy than talking about resources? Just is the SMP five hundred high yield Low Volatility ETF and its ticker code absolutely makes no sense. It's z y us us zeus so us. I mean that makes me want to buy it now Apart from its performance, I mean, this performance is okay, but there's obviously two more better ones coming after the break. But essentially, this ETF is really

income focused. So it's a fund that tries to track a select group of US companies that are picked to maximize income, money win, but also minimize risk or volatility that it is exposed to. So that's, from my perspective, pretty sexy. Whoever's organizing that sounds good. So you might know some of its current holdings, and a lot of its holdings, from my perspective, are actually kind of like in Australia we call them blue chip stocks. I would

say blue chip. They're tried, they're true, they're tested, they've existed for a lot of years. So for example, the technology company IBM, So you would have heard of IBM, you would have heard of Chevron, you would have heard of craft tins like that makes and it might not be something that you recognize, Jess, But Philip Morris International, do you know what that is? No idea, You probably haven't heard of it before, and it makes sense because

you don't smoke. They are a cigarette company, and they are arguably the most recognized and best selling international cigarette company. Marlborough Marlborough. Oh yes, yeah, I'm not very heard at that's never picked up a dart in my life. But I find it really interesting. And I'm not trying to give them credit. I just really like creeping on products. But get this. They are and were the biggest multinational tobacco company in the US, with their products sold in

more than one hundred and eighty companies. And now if you google that company, the description of their company is get this, Jessica. We're building Philip Morris International's future on smoke free products that are a better choice than cigarette smoking that goes in direct conflict to the product that

they sell. That's interesting because they still produce the Ciggi's Baby. Yeah, Like they still taking most of their money off that, but they're literally changing their focus because they know that the future maybe doesn't include them, and they're trying to be on that train. And I think that's really interesting. Is that green washing or is that No, that's not green washing. I think that that's a business identifying that they have limited time left before they'll either be made

illegal or redundant or you know, drop in sales. Like here in Australia, we know that the tax on cigarettes has absolutely been astronomical for good reason. It's to deter people from purchasing it. It's not because the government's trying to make more money. They're just trying to make it more inaccessible, which makes sense. But that leads to a decrease in people buying their product, which means they have

to also up their prices. So I think it's just honestly, cigarettes are dying, and I'm not mad about it anyway. I just find that interesting about Philip Morris International because it's just nice to know stuff about stuff, right. But zeus or US, which is the S and P five hundred high Yield Low Volatility etf I much prefers use manage to give all of its investors a twenty twenty

two financial year return of twelve point seven percent. Jessica, the concept of a high yield low volatility very appealing, very sexy. It may be sexy. Twelve point seven percent is not bad either. It's not bad, and I mean I would question like I just feel like Philip Morris obviously exists. I'm like, oh, is it really low volatility? There's so much risk. Yeah, there's so much risk from me as a non smoker because I'm like, that's going

to be dead soon. But addiction is what is driving their performance, so it's really not going that far that fast. So that's why I'm also super interested to see that they've changed their mission statement because it's like, well, is that really what we're working towards? Are you're going to protect your profits and make yourselves look good. It's not green washing because they are doing that, but it's also just,

I don't know, a little bit controversial. Ah, super interesting. Alrighty, let's go to a really quick break because we're going to make you wait to learn about those top two Baby, don't go anywhere. Welcome back everybody. Today we are reviewing the top five forming ETFs if the twenty twenty one twenty twenty two financial Yeah, we just got through numbers five to three, and now we've saved the two best

for us. That's true best because like we're about to talk about a fuel ETF so performing Yeah, like we didn't take ethics into consideration, and I mean I thought about this. I was thinking when we're scripting this jests

and just like pulling together all the research. I was like, maybe we should do like the top performing ethical ETFs, but like ethical means something different to literally everybody, and there's no way of me pulling together a top performing ethical ETF list without it becoming a recommendation, because then I would have to say, oh, I believe this is ethical, and that's not the case here in Australia. You just can't do that. So till we have that, maybe we

could do like a top ESG investing portfolio or something. Yes, but I mean slide into our DMS and let us know what you want, because we really like not having to think of our own topics and really like being spoon fed. But speaking of spoonfed, I went to the a Sex website and took the top five performing ETFs of twenty twenty two's financial year, and now I'm presenting them to you guys. As if I did all the work myself, you still a little bit of the work, got a little bit of the work he ASX did

most of it. But so number two we've got the Beta Shares Global Energy Company's ETF, which has the ticker code Jess fuel, Oh tell me more, what does that contain? Just press that they got that, Like what a good ticker code. So basically, this is really similar to the first ETF that we talked about. So we talked about the Beta Shares Global Agricultural Fund, which was the ASX ticker code food. Now we're talking about the ASX ticker

code Fuel. So I would argue that Beta shares are the most creative and kind of witty when it comes to mating their ASX ticker codes. But this fund, in contrast, actually holds a diversified range of global energy shares rather than agricultural ones. So once again we see Chevron here. Again Chevron is a really big oil and resources company. But then we see like Mobile and Royal, Dutch Shell and BP, so all of the big names that if I said, Jess, you're on, like the price is right,

what are the top five fuel companies? You probably put them all into this ETF. And this ETF actually really outperformed the other three that we have already discussed because over the twenty twenty two financial years, twenty seven point nine percent return, twenty seven point nine that's sounding a lot better than when we started this list at three point five, it's just like a lot more clickbaity, right, It's far more clickbaity than you know what it was

going to be. So I'm probably going to use this

to market episode. Yeah, very smart from you. Obviously, as we said before, resources very controversial, petrol particularly, But that's what's really frustrating about this space, right, Like when I was putting together share portfolios way back when it wasn't normal to take into consideration ethical considerations, really, I would talk to people and it's just like a no brainer to put resources as one of the biggest players, especially in high net wealth share portfolios, because they just so

tried and true and kind of stable. Like historically, obviously at the moment we are going through a pretty tumultuous time, but historically they would just pay their dividends, do their job, you know, keep bringing resources in. Like it just it was something where old school people would just buy BEHP because it made sense. Like I remember having one client, Jess,

and obviously I didn't on board them. It was like a historical client that I inherited and I loved them, so they passed away and their portfolio was inherited by their son who ultimately became my client, and we were talking about the portfolio and what we wanted to do, and this son was really passionate about ethical investing, like so passionate about the Great Barrier reef and really hated

the fact. I might have told this story on the podcast before, but really hated the fact that he owned BEHP because he was, like, I do so much he does volunteering to like clean up the reef and like you know, it donates money, and like very high networth family as well. He's like, I need to get rid

of it. But when we went and did the analysis to work out how much it would cost him to dispose of the shares, we had to go so far back that his shares in BHP were bought in British pound sterling wow, back when we didn't even have Australian currency, because his dad and then his grandfather had bought them and obviously they were so cheap that now that he needed to sell them, just think about those capital gains.

He was going to lose nearly half of his portfolio just by extinguishing it and like selling down that asset to buy something else. And when it comes to the power of money. I mean, this is a complete side note and a complete tangent, but like I think it's interesting. We ended up coming to the agreement that we would actually keep those shares because the money that that share was making could be donated to saving the reef and

you know, having a positive impact. So even if you own things, sometimes that's not the best idea to just sell them down because your quote values have changed, because the impact might be far bigger than what you can do with the money that your money is making. Think that there's just a lot to think about here, and you know, there's absolutely no shame in what you own.

I want you to be just really happy, but there are sometimes creative ways that we need to go round to make sure that you are happy with the portfolio that you have. Yeah, super interesting, not at all surprising with the rising energy prices that that particular ETF did pretty well. I'm not surprised to either, Jess. But you know what, we have one that has come in at over fifty percent and that is our number one performing

asx ETF of twenty twenty two's financial year. Can you guess what space it is in I'm gonna say resource. It is in resource is your genius. Beta Shares have taken out three of the top spots in this list. By the way, Ah, they've done well. I feel like they did really well. They work upstairs from us, Jess, they're in our office. We're basically best friends with an ETF provider. Ten out of ten love their work. But the Beta shares, this one doesn't sound nearly as sexy.

The Beta Shares Crude Oil Index ETF, which has the Teker CODEO ooho or if you like kind of blow your eyes. The o's kind of get a little bit skinnier and it's like triple zero. Please call them because you own a crude oil ETF. But yeah, let's not get into that. My personal opinion should not be foreshadowing your decisions as an investor. But essentially the best performing ASX ETF is the Beta Shares Crude Oil Index ETF, and basically it's another energy focused one, which we're not

surprised about. But it's actually nothing like the funds that we've already talked about. So instead of tracking energy companies, it actually only invests in West Texas intermediate crude oil futures contracts and doesn't actually hold any shares within it. What does that mean? Not holding any actual shares, so jess,

instead of having shares of other companies. Like before, we were talking about the Beta shares global energy companies, and I listed out the companies that it had shares in, So in its basket it holds little pieces of other companies, whereas the Crude Oil Index does not actually do that.

It actually only invests in crude oil futures contracts, so actual contracts, so basically pieces of paper are in your ETF, and it tracks the average and the returns of the West Texas Intermediate Crude Oil futures as opposed to actual shares that might be invested inside that. So it's actually just futures contracts instead of shares. I didn't even know that was a thing. It's wild what you can do

with an ETF these days. Wow. So it has obviously been the biggest performer over the last financial year with let's take it away with sixty point three percent over that period of time. Wow, that is a huge amount. I agree, But I also think it's kind of funny that it's West Texas shares, so basically it's just a benchmark that is used in trading, and there's another few. There's the Brent Crude and there's the Dubai Omann Crude Oil Index. So it's all quite interesting in that space.

But no, ETFs don't just necessarily have to hold shares just they can also hold bonds, which I think is quite interesting. But given how conservative they are, they were never going to make it to the top five performing of twenty twenty twos financial year super interesting. A lot of resources this year, which I feel like was not as much the case last year. Last year, I remember correctly, was very tech heavy. Yeah, very tech heavy because of what we've just gone through and now think about the

world coming back. If you're getting more expensive, the war that's going on at the moment involving Russia and Ukraine, like, there is a lot going on in that space making oil and resources far more valuable and people want to get their hands on them. So it kind of makes sense that this is the way that our top five shares are performing. And I actually I kind of want to like speed into the future and see what next year looks like, because it's going to be different again,

it always is. That's what I was just going to say. Imagine us sitting here in twelve months time, reviewing again another year, and if it's like a whole different bunch of sectors or like, it's just interesting to think about how it can change so much in such a short

period of time. Yeah, yeah, I get it. And I guess this is a really good example of why this is not a recommendation for things that you should buy, because the shares that we listed last year not on this list, So if you're expecting the same performance, it's just not going to happen. Like this is what has happened,

not what will happen. And I think this is just like really good pieces of education because it just teaches you a lot about one the share market and how it performs, but also like what's the economy up to? What does that mean when we then look at the share market and it makes sense that the performance isn't blowing us out of the water in the same way. But like, mate, I'd be happy with any of those returns at this point in time because I'm still in

the red. Yeah, same queen, but I recoonne it's about it today. I hope you guys enjoyed this rap episode. Let us know if there are any other categories he likes to wrap. Last year we did the top literary rap will just summarize. Yeah, we'll leave the rapping to all the real wrappers. Last year, I think we did the top five performing shares as well, which it'd be another fun mount if people are still keen individual shares like we are absolutely doing that. I've got we did that.

I'm on it. I'm on it. I'm on it. She's gonna go do research right this second. I've got to go. Guys, I am Audi. Before we do go, don't forget. If you do want to talk all things finance, join the Facebook group. There's almost two hundred and fifty thousand people in there talking about shares, about investing, about budget and cash flow, and just anything finance related that you coul possibly think of. We're talking about it. So she's on

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